Egypt's Concord eyes up to $750m from Japan

Egyptian company Concord International Investments aims to raise up to $750m from Japanese investors seeking more exposure to Egypt's undervalued firms and growing economy, the fund manager's chairman told Reuters on Sunday. Younes said the first, with $150m to $200m from Nikko Asset Management, would be launched by the end of the first quarter. Nikko was owned by Citigroup until last year when a controlling stake was sold to Sumitomo Trust & Banking Co for $1.2bn. Concord will also open a private equity fund with $150m and two other funds for listed securities with between $100m and $200m in the second half of 2010, Younes said, without naming the investors. The average price of an emerging market stock is 15-20 times its earnings, Younes said. "In Egypt, for the most active stocks you are barely at eight, nine, maybe 10 times. They are very modest valuations for companies with very attractive growth rates," he said. Younes told Reuters in October that the private equity group would set up an equity fund by mid-2010 targeting the food and healthcare industries and light manufacturing.