Aspire Capital establishes microfinance company with EGP 30m capital

Last updated: October 19, 2021 8:58 am

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A general view of the Egyptian Exchange (EGX) in Cairo August 18, 2013. Egypt's stock market fell sharply on Sunday as it resumed trading after hundreds of people were killed in a crackdown by the army-backed government on supporters of the Muslim Brotherhood. Banks and the stock market reopened for the first time since Wednesday's carnage, with shares rapidly falling 2.5 percent. REUTERS/Louafi Larbi (EGYPT - Tags: POLITICS CIVIL UNREST BUSINESS)

Aspire Capital Holding for Financial Investments, formerly known as Pioneers Holding Company for Financial Investment, announced Monday establishing Al-Khair Microfinance Company, with an issued capital of EGP 120m and paid-up of EGP 30m.

The company said in a statement to the Egyptian Exchange (EGX) that Al-Khair is currently in the process of obtaining the necessary licences from the Financial Regulatory Authority (FRA) to start its activity.

Meanwhile, the Securities Listing Committee had agreed to reduce the authorized capital of Pioneers Holding Company for Financial Investments from EGP 10bn to EGP 1bn, and reduce the issued capital of Pioneers from EGP 5.27bn to EGP 210.96m, by reducing the nominal value of the share from EGP 5 to EGP 0.20 per share, while keeping the number of shares at 1.05 billion shares.

EGX explained that this was the result of the restructuring the company and dividing it into two companies, which split assets, liabilities, and ownership rights at the book value, with the same shareholder structure and ownership ratios, as well as number of shares, without modification, taking into consideration the financial statements for the fiscal year ending on 31 December 2020 as a basis for the date of the split.

The committee agreed to include the amendment of the name of Pioneers to become Aspire Capital Holding Company in light of the amendment of Article No. 2 of the company’s regulations.

The committee also agreed to carry out amendments to the company’s data after reducing the capital and the nominal value of the share, as well as amend the company’s name on EGX’s database, after determining the opening price and the start date of trading the company’s shares, in accordance with the decision of the trading committee as of the beginning of the trading session on 11 October 2021.

Pioneers achieved a profit of EGP 522.84m during the first half (H1) of the year, down from the EGP 800.9m in the same period in 2020.

Revenues of the company increased during H1 of 2021 to EGP 4.28bn, compared to the EGP 3.57bn in the same period of last year.