EFG Hermes

EFG Hermes Holding S.A.E.
(المجموعه الماليه هيرمس القابضه (ش.م.م
Société Anonyme Égyptienne
Traded as EGX: HRHO
LSE: EFGD
EGX 30 Component
Industry Investment Services
Founded 1984
Headquarters Cairo, Egypt
Key people
Products Brokerage, Asset Management, Investment Banking, Private Equity, Research
Revenue Increase E£ 4.03 billion (2016)[1]
Increase E£ 9.5 billion (2016)[1]
Increase E£ 4.2 billion (2016)[1]
Total assets Decrease E£ 22.76 billion (2016)[1]
Total equity Increase E£ 13.82 billion (2016[1]
Number of employees
 2.900+
Website www.efg-hermes.com

EFG Hermes Holding S.A.E. (Egyptian Financial Group Hermes Holding Company) is an Egyptian investment bank present in the Middle East and North Africa (MENA) region and specializes in securities brokerage, asset management, investment banking, private equity and research. EFG Hermes serves a range of clients including sovereign wealth funds, endowments, corporations, financial institutions, high-net-worth clients and individual customers. EFG Hermes is listed on the Egyptian Exchange (EGX) and London (LSE) stock exchanges. EFG Hermes has offices in Egypt, the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait, Jordan and Lebanon with over 800 people from 25 nationalities. They serve clients from the Middle East, North Africa, Europe and the United States. EFG Hermes owns a 63.7% majority stake in the Lebanese commercial bank, Credit Libanais.

History

EFG, also known as the Egyptian Financial Group, became the first investment banking firm in Egypt when it was established by Dr Mohamed Taymour in 1984. Hermes was founded in 1993 under the newly promulgated Capital Markets Law 95. EFG created and analyzed privatization plans for the Egyptian government for several years. In 1993, The Egyptian Financial Group and Hermes independently made a move into securities brokerage. The two companies competed and both companies brought many investment strategies that were common to the west to Egypt as several of the two firm's founders had Wall Street experience in corporate finance, sales & trading and asset management;, for example Hermes established the first equity index in all of Egypt.

In 1994, both Egyptian Financial Group and Hermes entered into asset management. Fueled by organic growth; the two firms also accounted for lead managing a majority of the privatization capital markets IPO's during 1995 and 1996. The two companies soon reached the point that further growth was not possible without a wider network of local and international clients on one hand, as well as the rising competitive threat of international investment banks in the progressively more active Egyptian market in terms of investment baking privatization transactions as well as higher trading volumes . These factors led to a merger in 1996 between EFG and Hermes.

Structure

EFG Hermes has five Divisions and two subsidiaries under its finance platform

Securities Brokerage

EFG Hermes Securities Brokerage is the leading brokerage house in the Arab world. With the region’s largest brokerage team, the division caters to an extended spectrum of investors including foreign, local and Gulf institutions as well as individual, VIP, high-net-worth individuals and family offices. The division’s products and services range from trading services including phone trading, online trading, SWAP/P-Note products trading and margin lending for Egyptian retail investors.

Asset Management

EFG Hermes Asset Management serves a client base that includes sovereign wealth funds, endowments, foundations, multinational corporations and family offices. The division employs professionals in portfolio management, trading, research, compliance and risk across its 3 locations in Egypt, UAE (Dubai) and Saudi Arabia. The division has consistently delivered superior returns across its broad and diverse product spectrum.[2]

Private Equity

EFG Hermes Private Equity is a private equity house, with a presence in Cairo and Dubai. The division is focused on attractive investment opportunities that capitalise on different opportunities in and outside the MENA region. EFG Hermes Private Equity advised InfraMed, the largest investment vehicle dedicated to infrastructure investments in the Southern and Eastern Mediterranean. The firm was also one of five global and regional founding sponsors that together contributed EUR 385 million to establish InfraMed. In late 2014, EFG Hermes launched Vortex - its renewable energy vehicle - to invest in solar and wind energy projects across Europe and Asia.

Investment Banking

EFG Hermes Investment Banking is an advisor for major M&A, debt and equity transactions. The division’s investment professionals have advised on cross-border transactions in the region through a distribution network that encompasses more than 102,000 investors across North America, Europe, the Middle East and Africa. The Investment Banking team has completed some US$53 billion in M&A transactions since 1995 while raising more than US$19 billion through initial public offerings, rights issues, secondary offerings and private placements in the same period.

Research

EFG Hermes Research division offers its clients coverage of MENA markets, including more than 150 companies representing c. 60% of the region’s aggregate market capitalisation. The team offers economics and strategy coverage of 11 key countries in the Arab world. Products include equity research, strategy and macro-strategy notes, sector overviews, economic notes, industrial research and country-specific economic and banking data reports.

Strategy

EFG Hermes global strategy relies heavily on expanding in the MENA region. Therefore, the company has made its priority to enter into the major financial hubs of the Middle-East, namely Egypt, the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Lebanon.

United Arab Emirates

EFG Hermes launched its brokerage activities in the UAE in early 2005, and by early 2007 had captured dominant market share on Dubai Financial Market. The firm is also within the top two ranked brokers on the Abu Dhabi Securities Market. EFG-Hermes Brokerage UAE has branches in Dubai, Abu Dhabi, Ras Al Khaimah and Al Ain.

In December 2005, EFG Hermes was granted a license to conduct asset management and investment banking activities from the Dubai International Financial Centre (DIFC). EFG Hermes UAE is regulated in this capacity by the Dubai Financial Services Authority (DFSA), an independent regulatory authority that operates to the standards of major financial centers such as London and New York City. Out of Dubai, the firm manages the region’s top performing funds and has closed a number of landmark investment banking transactions. In February 2006, EFG Hermes UAE was also granted a license to conduct brokerage activities from within the DIFC and became the first regional trading, clearing and custody member of the Dubai International Financial Exchange (DIFX), its wholesale exchange.

Kingdom of Saudi Arabia

EFG Hermes was granted a license from the Capital Market Authority (Saudi Arabia) (CMA) to launch its operations in the Kingdom of Saudi Arabia in March 2007 offering securities brokerage, investment banking, asset management and research services in the largest investment market in the region. The brokerage arm reached the #1 position among the 12 independent brokerage companies, despite having started trading properly only in 3Q 07.

Qatar

EFG Hermes established its business in Qatar at the end of 2007 having been granted a license by the Qatar Financial Centre Authority (QFCA) for investment banking and asset management business.[3]

Oman

In April 2008, EFG Hermes acquired 51% of Vision Securities Co. LLC in Oman at a PE ratio of 11.5 compared to EFG Hermes’ PE ratio of 16.6.EFG Hermes has long since accounted for substantial flows into the Omani market on behalf of its foreign institutional clients, and is now able to serve a broader base of clients from its presence on the ground in Oman.

Now a member of the EFG Hermes Group, Vision Securities is one of Oman’s leading local brokers and has market share of 9.2% and net profit after tax of US$2.6 million as of end 2007.

Kuwait

EFG Hermes IFA, the brokerage arm of EFG Hermes in Kuwait, is a brokerage firm on the Kuwait Stock Exchange (KSE) with a client base including a wide array of retail, VIP and high-net-worth clients, as well as local, regional, and international institutional investors. EFG Hermes IFA provides the full range of brokerage services including an online trading platform. The firm has maintained its position as one of the top two brokerage firms in Kuwait.

References

  1. 1 2 3 4 5 "Annual Report 2016" (PDF). EFG Hermes. Retrieved 2017-06-28.
  2. ↑ "EFG Hermes appoints asset management head | 1 October 2013". Stock Market Wire. 2013-10-01. Retrieved 2015-11-12.
  3. ↑ https://web.archive.org/web/20120903201415/http://www.efg-hermes.com/English/Showpage.aspx?pageid=202. Archived from the original on September 3, 2012. Retrieved October 20, 2013. Missing or empty |title= (help)
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.