Prime Egypt to offer Egy Labs stake on EGX in 2Q 2023

Fatma Salah
3 Min Read

Head of Prime Egypt Group Tamer Wagih told Daily News Egypt that Prime Egypt — the owner of Prime Medical, which operates Egy Labs — aims to offer a stake of the laboratories on the Egyptian Exchange (EGX) during the second quarter (2Q) of next year.

He added that the company is expanding at a sure pace, explaining that it has taken a decision not to distribute the profits of laboratories for three years to boost the investments of laboratories in Egypt during the coming period.

“We plan to offer a share of Egy Labs on the EGX after carrying out the process of developing it,” he said, pointing out that the company will start preparations for the offering during 2Q 2023.

The company also aims to penetrate new sectors of investment, especially the industrial sector in the field of furniture manufacturing, by the beginning of next year.

Furthermore, he revealed that the company is considering acquiring one of the existing food factories to develop it. It is currently examining three factories in the 10th of Ramadan, the Fifth Settlement, and Alexandria to choose the most appropriate factory to start the production process.

Wagih also expects an increase in the demand for textiles, decorations, and finishes given the state’s focus on construction, pointing out that factories operating in these sectors need to increase their production capacity.

Additionally, he said that the depreciation of the EGP against the USD could become a strong factor in attracting foreign investments, especially that Egypt is a market with more than 100m consumers in a country that is rebuilding in terms of energy, roads, and infrastructure investments.

Wagih went on to that Egypt is a gateway to Africa and is involved in many trade agreements such as the COMESA, which allows free trade between the countries of eastern and southern Africa; the Arab Trade Agreement, which includes Morocco, Tunisia, and Jordan; the Mercosur Agreement with Brazil, Argentina, Uruguay, and Paraguay; in addition to the free trade agreement with the EU.

He stressed that these factors are in the interest of the serious foreign investor, especially if investments are made in projects in the medical or educational sectors, as well as in the industrial or development sectors, in which it is possible to take advantage of the available opportunities and benefit from export so that investments bring in USD returns.

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