IDH to delist from Egypt, retain London listing

Shareholders in Integrated Diagnostics Holdings Plc (EGX:IDHC; LSE:IDHC) have voted in favour of the board’s proposal to seek a voluntary delisting from the Egyptian Stock Exchange (EGX). Over 93% of shareholders supported the motion at a recent extraordinary general meeting (EGM).

Speaking last month, CEO Dr Hend El Sherbini said that the reason for exiting the EGX was to improve liquidity in the company’s shares.

"At the time of putting in place the EGX listing in May 2021, our intention had been to [...] drive up trading volumes by offering Egypt-based investors an opportunity to capitalise on the company's strong growth and prospects,” she said. “We have unfortunately seen continuing low liquidity and trading volumes of the company's shares on the EGX and the absence of any investment potential in maintaining the listing on this secondary market.”

Since listing on the EGX in 2021, IDH’s share price has fallen nearly 97%. That’s despite a relatively robust financial performance over the years. Its London share price has fallen 79% since listing in 2015.

Prior to the EGM vote, a minority shareholder shared their reservations about the move. "We're not so thrilled," they told Capital Markets Africa on condition of anonymity. "We've been pushing the company to delist from London and just have a sole listing in Egypt where they have a natural shareholder base and natural sell side."

IDH operates in the consumer healthcare sector. It provides medical diagnostic services in Egypt, Jordan, Sudan, Nigeria and Saudi Arabia across over 500 branches. Last month, it reported a 139% jump in net profit growth for 1Q24 compared to the same period last year. Egypt contributed over 80% of total revenues in 2023.

The company serves two principal patient types: contract and walk-in. Around 70% of total revenue generated across the two segments is paid in cash. Revenue growth has continued to be supported by increased test volumes and higher average revenues per test.

IDH’s top shareholders are Dr Hend El Sherbini (26.93%) and Actis LLP (21.00%).

The company will retain its London listing.

© Capital Markets Africa, 2024

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