Odin Financial Investments will, next week, start the procedures for establishing a fund to invest in shares listed on the Egyptian Exchange (EGX). The fund will be set up in cooperation with the Saudi Financial Company (SFCO) which will contribute 51% of the capital to Odin.
Odin Vice-Chairperson Hashem El-Sayed said that the fund’s capital stands at EGP 20m, but aims to collect a total of EGP 1bn. This will be pumped into shares investment of EGX-listed companies, and will gradually start from November or December 2020.
The company is expected to complete the procedures for establishing the fund and obtaining Financial Regulatory Authority (FRA) approval for incorporation within the next month.
El-Sayed added that his company plans to establish another venture capital investment fund, with a capital of EGP 1bn, which is expected to be launched in early 2021.
He said that the equity fund comes as part of a joint investment agreement between Odin and SFCO which was reached last December, and which aims to establish an investment fund for stocks in Egypt. However, due to the recent economic stagnation, both in Egypt and worldwide, due to the novel coronavirus (COVID-19) pandemic, the agreement’s implementation has been delayed.
El-Sayed also said that Odin is currently looking at industrial sector investment opportunities. So far, two acquisition opportunities have presented through the fund after the incorporation process, although the amount of allocated investments has not yet been set.
Odin recently announced that its Board of Directors had approved the establishment of an investment fund in Egyptian stocks in partnership with KASB. In a recent statement, the company said that its board had approved the foundation of an investment fund for non-banking financial activities, particularly in micro-finance, as well as a venture capital fund. The approval will see the company also establish a fund for services and education technology.
El-Sayed emphasised that these steps come as part of Odin’s transformation into an integrated investment bank, a trend it started following its EGX flotation of the Emerald Real Estate Investment Company. Odin played the role of offering manager in the flotation.
Odin’s capital currently stands at EGP 248m and its ownership structure is distributed across: 27.68% with Odin Capital Group for Financial Investments; 22.24% with Egyptians for Housing, Development and Reconstruction; 13.44% with New Smart for Industrial and Commercial Investments; 10.17% with Muhammad Nabih Issa Al Ataba; 6.8% with Ibrahim Gharib; 1% with Samo Consulting; 0.87% with Pioneers Holding Investments; and 1% distributed amongst other institutions and individuals.