MM Group’s official says company has $ cash balance

Chairman and Managing Director of MM Group for Industry and International Trade Khaled Mahmoud said that his company has started its business for more than 100 years, adding that the company's main value is to reach the Egyptian consumer through more than 40,000 points of sale covering more than 90% of Egypt. He added that the company operates during the current phase in the field of phones and electronics.

He added, during an interview with “Arabs Today”, that The IPO was launched at a price of 6.06 pounds per share. The minimum bid for the public offering is 100 shares with a maximum of 900 thousand shares. He announced that the company has made a fund to ensure the stability of the share price for one month from the date of trading.

He clarified that smart phones can be considered a luxury item, with all life turning to this small phone in the hands of everyone, yet more than 80% of the phones used by Egyptians are traditional old mobile phones. He added, “The Egyptian market is witnessing a wave of transformation from traditional fans to air conditioners for existing families and from traditional television sets to LCD screens.”

He stressed that there are major factors contributing to the increase of demand on the smart phones in Egypt, including the notable increase in the transformation from the use of traditional phones to smart ones during the recent years. He stressed that the demand on cell phones transcend 30 million phones per year.

With the introduction of the fourth generation in 2017, he said, the demand will notably increase. He said that three percent of the current phones in Egypt are compatible with 4G services. He stressed that he company has been able to build a large plan over the years in the face of foreign exchange risk, as it has a cash balance in foreign currencies to be kept until stability of currency market.

He stressed that the company managed to achieve EGP 80 million with foreign exchange gains in 2016 through positive foreign exchange balances but was completely excluded from any performance assessment of the company.

He added that the percentage of financial coverage in Egypt is very low as the percentage of those with bank accounts of Egyptians only 14% of the number of adults. "It is expected to lead the provision of banking services through mobile phones to increase the volume of deposits and high growth, she said.

She stressed that the positive service opportunities for banks will give the mobile payment system opportunities for banks to market and sell new services and products to existing and new customers such as salaries, transfers, payment of bills and collection of micro financing installments.

He pointed out that the new rules allow micro-enterprises, institutions and merchants from the customers of the service to pay and collect from the mobile phone account, which means facilitating the sale and purchase of goods and services, which means to promote the local market.

Source: Ahram online