The Saudi Egyptian Investment Company (SEIC) has acquired additional stakes in state-owned FinTech e-Finance for Digital and Financial Investments to 25.01 percent according to a stock market statement.
According to the EGX statement by e-Finance, SEIC acquired an additional 0.01561 percent on the 18th of September on top of its 25 percent.
The SEIC, the Egyptian investment arm of KSA’s Public Investment Fund (PIF), reportedly is looking to increase its stake in the state-owned FinTech to 28 percent from 25 percent, according to Ashraq Business, which cited people familiar with the matter yesterday.
According to Ashraq Business’ source, rather than a bulk purchase, the SEIC aims to steadily purchase shares until it reaches its goal of 28 percent. As its stake in the FinTech is now above 25 percent, the SEIC will now be required to share its investment plans for the company.
Last year, the SEIC acquired 25 percent of e-Finance for LE 7.5 billion, making it the company’s single-largest shareholder, receiving 2 board seats. This was part of a wider $1.3 billion investment in state-held shares of EGX-listed companies.
The Saudi Egyptian Investment Company is seeking to drive growth in key business areas, enhance efficiencies, and back environmental, social, and governance (ESG) initiatives as part of its aim to expand internationally, particularly in Egypt.
During the first half of 2023, the EGX-listed e-Finance recorded a significant growth of standalone net profit after tax by 76 percent year-on-year, collecting LE 390.22 million, compared to LE 221.21 million in H1 2022.