Egypt Based Firm Acquires Controlling Stake in Local Brokerage
Egyptian investment firm EFG-Hermes formally became part of the Pakistan Stock Exchange as a broker on Monday. It is for the first time in nine years that a foreign brokerage house has begun its operations in Pakistan.
EFG-Hermes is an investment bank operating in the Middle East and the North African (MENA) region. It has now opened its first office in Pakistan.
The bank has acquired 10.2 million shares of IFSL at Rs 15 per share, translating to a sum of $1.5 million.
At the start of trading, a ceremony was held to welcome the foreign firm to the Pakistani market. While talking to the media, EFG-Hermes Group CEO, Karim Awad, said, “We are very proud to be in Pakistan. This is a market full of potential. We believe we can play a good role in bringing foreign inflows from western institutions and GCC countries to Pakistan’s stock market, as well as hopefully bring new IPOs [Initial Public Offerings] from local companies.”
Investors reacted positively to the move, with the KSE 100-index rising by 600 points to the mark of 51,374.