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Investors Federation plans IPO for holding company to invest in new Suez Canal

Investors Federation plans IPO for holding company to invest in new Suez Canal
The General Investors Federation announced it plans to establish a holding company with EGP1 billion capital, which will contribute to the development of the new Suez Canal.
Mohamed Farid Khamis, head of the federation and founder of Oriental Weavers said the federation will put 60% of Suez Canal Holding shares worth EGP 1 billion to an Initial Public Offering (IPO) in two months, according to Daily News Egypt.
“The new company will help implement development projects on both sides of the Suez Canal Axis,” Khamis said. “We aim to fund the remaining 40% with contributions from businessmen.”
Khamis went on to explain that he consulted both the chairman of the Egyptian Exchange and head of the Suez Canal Authority. He also said that “the value of one share will not exceed EGP 10”.
Mohamed Omran, chairman of the Egyptian Exchange, confirmed that he received a phone call from Khamis. They discussed the federation completing a financial and economic feasibility study for five years ahead as a condition for the Egyptian Exchange allowing preparations to begin for the IPO bulletin, he said.
Khamis said that an agreement has already been made with a financial adviser who will lead the feasibility study to be implemented by the new company. However, Khamis said: “Feasibility studies are subject to Dar Al-Handasa finishing the general outline of the of the Suez Canal Axis Development project. I called Vice Admiral Mohab Mamish, head of the Suez Canal Authority, who stressed that Dar Al-Handasa is close to finishing the general outline and it will be completed within two months.”
During the opening of the Akhbar El Yom Economic Conference Sunday evening, Khamis told Daily News Egypt the study would be completed by Baker Tilly and Wahid Abdul Ghaffar & Co. The study’s goal is to analyse the most important canal projects, with their expected profits to be calculated for the next five years from the date that canal excavation is completed.
Khamis asserted that investment incentives and exemptions are not up to par in Egypt, and called the administration to rapidly take care of legislative flaws that impede local investors. He added that this must take place as promotional activities undertaken to attract overseas capital. Another requirement includes improving business practices by speeding up litigation, licensing and providing of land, he said.