Opening Bell Ceremony on visit of EFG Hermes Group Delegation

This morning’s PSX opening bell hosted Mr. Karim Awad, Chairman, EFG Hermes Management. A ceremony was hosted by PSX’s top management to welcome the delegation of EFG Hermes Management. It was attended by the senior management of Pakistan Stock Exchange. Members of financial and investment sectors were also present.

EFG Hermes (Egyptian Financial Group), one of the largest brokerage houses in the Middle East has acquired a 51% of issued capital in IFSL Securities. With a paid-up capital of $1.2 billion, EFG is one of the biggest brokerage houses in the Middle East. It currently operates in Egypt, United Arab Emirates, Kuwait, Oman, Jordan, Saudi Arabia and now in Pakistan. The merger was a first of a kind in Pakistan’s brokerage house business from an MNC. The ownership of IFSL by EFG Hermes has come in the wake of Pakistan’s stock market’s remarkable performance over the last few years as it has outpaced number of emerging markets in the world in terms of year on year growth. IFSL is currently headed by veteran stock market analyst Mr. Muzammil Aslam.

The ceremony hosted by PSX for the incoming company highlighted on how Pakistan’s stock market’s performance fueled by right macroeconomic policies has made investment in Pakistan’s economy lucrative for foreign investors. It was also mentioned during the press brief that the potential for investment in Pakistan is huge, as the market is finally opening up with the right economic policies in place. The delegation also congratulated Pakistan on its inclusion in MSCI – EM.

The stock price of IFS has risen by almost 150% since its acquisition by EFG Hermes last November. After the due diligence, current shareholders of IFS will sell as much as 65% of their total shareholding to EFG while keeping the rest of 35%. The will enable EFG to have a majority stake in the company (51%), while the current management will to hold their positions.