The disclosure comes only a few days after the ADQ announced its intention to invest up to $2 billion in the Egyptian market by purchasing state-owned stakes in a number of companie
The Abu Dhabi Developmental Holding Company (ADQ), or Abu Dhabi wealth fund, recently bought large stakes in five Egyptian companies, including both private and state-owned companies, at a value of $1.8 billion.
Revealed by the Egyptian Exchange (EGX), the purchases were made under a block trading transaction; a high-volume transaction that allows the broker dealers to purchase shares for several institutional clients to fill the full size of the acquisition deal.
The EGX disclosed that ADQ has bought several shares in the International Commercial Bank (CIB), Fawry, Alexandria Container and Cargo Handling Company, Misr Fertilizers Production Company (MOPCO), and Abu Qir Fertilizers.
The disclosure comes only a few days after the ADQ announced its intention to invest up to $2 billion in the Egyptian market by purchasing state-owned stakes in a number of companies.
In March, Bloomberg reported that the Egyptian state agreed to sell some of its holdings in five EGX-listed companies as part of a strategy to boost finances amid consequences of the conflict between Russia and Ukraine.
EGX data noted that ADQ bought 340,096,235 shares of CIB at a total value of around $911.4 million, 215,124,316 shares of Fawry at a total value of $68.5 million as well as the subscription rights for 201,603,746 with a value of $54.8 million.
The fund has also invested in several state-owned companies. According to the EGX, ADQ acquired 476,721,088 shares of Alexandria Container and Cargo Handling Company with a total value of $168 million. As well as 45,823,446 shares of Misr Fertilizers Production Company (MOPCO) with a total value of $266.5 million, and 271,573,655 shares of Abu Qir Fertilizers (ABUK.CA) for $391.9 million.
In December 2021, the Fund opened its office in Egypt “to build on its commitment to investing in the country’s economic growth,” according to ADQ.
The fund closed several acquisitions in 2021 as well, including the acquisition of real-estate development company SODIC with Emirati consortium Aldar, estimated to be worth EGP 6.1 billion ($386.8 million).