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EFG Hermes Holding [HRHO]
Egypt / Non-Banking Financials / Valuation Adjustment
12MPT: EGP14.8 (+30%)
set on 22 Dec 2020
Investment Rating: Overweight | Risk Rating: Medium
Bonus share action effective today
The FRA approved earlier this month the decision passed by EFG Hermes Holding’s [HRHO] EGM regarding Employee Share of Profits Program (ESOP). The ESOP will be accomplished through a 20% distribution in stock dividends, which will see HRHO’s paid-up capital increasing from EGP3.8bn to EGP4.6bn , using HRHO’s retained earnings. The increase is amounted to EGP768.6mn, distributed over 153.7mn shares, at a par value of EGP5.0/share. Accordingly, HRHO’s total number of outstanding shares will reach to 922.3mn. In light of the approved corporate action, we adjust our FV from EGP15.4/share to EGP12.8/share, while adjusting our 12-month price target (12M PT) from EGP17.7/share to EGP14.8/share.
For the full report, please click here.
Sherif El Etr
Equity Analyst
T +202 3300 5720