Last Update 21:31
Friday, 14 December 2018

EFG Hermes looks to Saudi business, Nigeria for expansion

Reuters , Tuesday 9 Oct 2018
EFG
Egypt's EFG Hermes's H.Q. (Photo: Reuters)
Share/Bookmark
Views: 1785
Share/Bookmark
Views: 1785

Egyptian investment bank EFG Hermes hopes to close a deal to acquire a Nigerian broker next month and is hoping to win IPO mandates in Saudi Arabia as it seeks new growth markets.

Saudi Arabia could be a major growth market for EFG Hermes, which is the biggest investment bank in the Middle East but derives much of its business there from Egypt and the United Arab Emirates.

It has already announced plans to expand its staff as it targets mandates in Saudi Arabia, where it expects the IPO market to pick up by the end of this year.

Mohamed Fahmi, co-head of investment banking, told Reuters on Tuesday that EFG Hermes was looking to win mandates to advise on private sector IPOs and mid-market mergers and acquisitions in Saudi Arabia.

Many potential candidates for IPOs in the kingdom are looking at dual listings and at issuing global depository receipts (GDRs), he said.

These listing options have not been approved yet but the Capital Markets Authority of Saudi Arabia is looking to implement them, he said.

The Saudi market, with a capitalisation of about $500 billion, is bracing for heavy inflows of foreign funds in 2019 -- analysts predict $20 billion or more -- as it joins emerging market indexes compiled by MSCI and FTSE Russell. Saudi authorities are working on initiatives to deepen the market with initial public offers of equity.

On Nigeria, EFG Hermes announced in July that it would acquire Lagos-based Primera Africa, which offers brokerage and research services to local and foreign investors. The bank favours the country's long-term growth potential after the country introduced a series of reforms including currency devaluation.

An EFG spokesperson said on Tuesday the deal is expected to close in November subject to regulatory approval and certain conditions.

Search Keywords:
Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.