Osool Investment Deal Backed by EGP 343M Valuation Report

Andersen in Egypt has issued an independent fair value report for Osool Brokerage, in connection with a proposed strategic investment by UAE-based Amas Investments. The report, officially filed with the Egyptian Exchange and approved by the Financial Regulatory Authority (FRA), valued Osool at approximately EGP 343 million, or EGP 0.86 per share.

The valuation was conducted in full compliance with the Egyptian Valuation Standards (EVS) issued by the FRA, ensuring both regulatory alignment and technical rigor. Andersen adopted a top-down analytical approach, starting with an assessment of the macroeconomic environment, followed by a detailed industry and market analysis, before moving into a company-specific financial review.

Andersen in Egypt played a pivotal role in evaluating the company, relying on robust valuation methodologies and a thorough analysis of all relevant internal and external factors.

The valuation process involved:

Step 1. Economic Analysis (Macro Level):

• Assess macro indicators: GDP, inflation, interest rates, FX, monetary & fiscal policy
• Evaluate economic cycles and their impact on capital markets
• Correlate GDP growth with EGX trading activity
• Gather EGX trading value & GDP data (5–10 years)
• Calculate Trading Value-to-GDP (TV/GDP) ratio and assess historical trends
• Forecast future EGX trading volumes using GDP projections

Step 2. Industry Analysis (Sector Level):

• Review key pillars of the Egyptian securities and brokerage industry
• Analyze Egyptian Stock Exchange (EGX) 2024 key highlights
• Evaluate historical performance of major Egyptian indices
• Understand trading classifications on the EGX
• Assess the impact of government privatization programs on trading volumes

Step 3. Market Positioning (Company within Sector):

• Estimate total retail brokerage market size
• Determine Osool’s retail revenue and calculate its market share
• Forecast Osool’s future market share based on retail trends and strategy

Step 4. Company Analysis (Micro Level):

• Conduct historical financial and operational analysis of Osool
• Co-develop business plan projections with management
• Validate assumptions behind revenue growth, costs, and margins

Step 5. Valuation Analysis (Value Level):

• DCF Methodology: Derive revenue from market size × projected market share – Forecast free cash flows and apply appropriate WACC
• GCM (Guideline Companies Method): Use peer-based valuation multiples (P/E, P/B)
• Cross-Validation: Compare and reconcile DCF and GCM outputs
• Conclude on final fair value estimate

Based on Andersen in Egypt’s report, Osool’s board approved the issuance of 116.822 million new shares, representing 22.6% of the company’s capital, fully allocated to Amas Investments at the derived fair value raising EGP 100 million to strengthen the company’s equity base and support future growth.

The engagement was led by Andersen in Egypt’s Financial Advisory Department, under the leadership of Senior Partner – TAS Service Line Leader, Mr. Mohamed A. Abdelhaleem.

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