FEP Capital, the private Equity, investment Banking and consultancy company, the most recent investment bank working in Egypt, has announced the signing of a sponsorship contract with the Nahr El-Kheir Company for Agricultural Development and Investment and Environmental Services, in order to register the latter in Nile Stock Exchange (NILEX).
The step aims to promote the presence of FEP Capital in NILEX company records as well as support the sector of small- and medium-sized enterprises (SME) which is considered the largest employer of labour in Egypt and the real backbone of the Egyptian economy.
The step is also part of FEP Capital’s expansion plan to increase its asset management portfolio and direct investment to $1.5bn by the end of 2018, instead of $1.2bn. The increase will take place with the expected improvement of the economy over the next few years.
CEO of FEP Capital Omar El-Maghawry said that the company was keen to sign a sponsorship contract with Nahr El-Kheir as a sort of enhancement to FEP Capital’s role in NILEX after becoming the top company in the field of company registrations. FEP Capital registered 12 of the total of 30 NILEX registered companies. El Maghawry added that since 2015, his company has been giving special attention to SMEs that are considered the largest supporter of labour in Egypt. They also represent the largest percentage of the Egyptian economy.
Hisham Ali, the company’s registration manager in FEP Capital, said he expects the registration of Nahr El-Kheir to be concluded and the shares to be offered in NILEX by the end of 2016. Nahr El-Kheir’s registration is part of FEP Capital’s framework to register three new companies in NILEX during 2016.
Within the same context, Sherif Fathy, Investors Relations manager in Nahr El-Kheir, said that the company has increased its capital from EGP 2m to EGP 7m in order to utilise the outcome of the increase in its future expansions of the company’s activities. He stressed the importance of partnership and obtaining the sponsorship of FEP Capital, as well as working to help troubled SMEs by restructuring and supporting them.