Egypt: Sidpec unveils new JV in US, capital raise

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Cairo – Sidi Kerir Petrochemicals Company (Sidpec) inked a deal to establish Alexandria Supply Chains Company in line with the US shale gas project, according to a bourse filing.

The Egyptian Petrochemicals Holding Company (ECHEM) will hold a 15% equity ownership in the joint venture (JV), while the Egyptian Natural Gas Company (GASCO) will own a 10% shareholding,

Sidpec, the Egyptian Ethylene and Derivatives Company (Ethydco), and Gama Construction Company will acquire 25% equity, each.

Meanwhile, the necessary procedures are underway to establish the JV and execute the project.

Capital Raise

The board members of Sidpec greenlighted a capital increase of EGP 302.40 million, funded from the company’s profits registered in 2023.

The EGX-listed firm plans to raise the issued and paid-up capital to EGP 1.81 billion from EGP 1.51 billion.

Subject to the approval of the extraordinary general meeting (EGM), the increase amount will be disbursed over 756 million shares at a nominal value of EGP 2 per share.

In the three-month period that ended on 31 March 2024, the net profits of Sidpec jumped by 7.50% year-on-year (YoY) to EGP 559 million from EGP 520 million.