“Those who can’t do, teach. And those who can’t teach, teach gym.” Woody Allen
And those who can’t start an investment fund, start a financial blog.
This is the 3rd iteration of companies that should go public on the Amman Stock Exchange (you can click here for Part 1 and Part 2). N.B: anything underlined is a link to a website.
1- Madfooatcom
In 2022, Madfooatcom (via eFawateercom), processed transactions of $14.7 billion. That’s 1/3 of Jordan’s GDP.
It seems the backers of this firm also want to break the record of highest acquisition in the country, beating that of Maktoob. I think it would be best if the company went public in Jordan. It will additionally bring much needed transparency to the public.
Use of funds: acquire local accounting software companies and startups to create a 1 stop shop for accountants and auditors (includes sales tax integration, invoicing, bank reconciliation etc.)
Suggested ticker: CMSN, FTRA
2- Merchant Banks
It’s been an interesting Q1 2023 for traditional banking and seems like it’s the beginning of the end for them.
Who needs these medieval institutions that were created at the same time as Alchemy and Astrology? Today’s average customer can get a digital wallet on their phone and they can make any purchase via Buy Now Pay Later schemes at competitive rates (including a car 🚗 and soon a house 🏡).
All is left are traders (exporters and importers) who still need a financial institution to manage their international trade (lending, letters of credit etc.)
That’s where Merchant banks come in.
We can be ahead of the curve and start a merchant bank today, backed by Jordan’s Exporters Association.
Use of funds: incorporation
Ticker: TJAR
3- Nuclear Power ☢️
We were one of the first to express interest in building peaceful nuclear power as an oil poor nation yet Türkiye and the UAE beat us to the punch. If Jordan wants a low carbon, renewable, and clean energy, nuclear power is the way to do it. And that smoke coming out of those chimneys is just water vapour!
The fastest and cheapest way to do it would be through SMRs (if integrated well with a smart grid)
Use of funds: incorporation
Suggested Ticker: ATOM, NCLR, BOOM
4- Automobile
There were many instances of investors wanting to jump start the automobile sector in Jordan (in 2018 with Siag1 and in 2023 for electric cars2). I hope by going public they get access to the much needed funds to quickly start with production. I just hope the design won’t be bland like how all international cars seem to all look alike. And I hope they add a feature where windows close automatically if the car passenger is about to throw garbage out of the window.
Use of funds: incorporation
Suggested ticker: SAQR, MRKB
Now for smaller examples with well established companies (to diversify the Social Security Investment Fund’s (SSIF) portfolio).
5- HYGEX
Well known brand for cleaning materials
Use of funds: expansion
Suggested ticker: NDEF, HGEX
6- Hammoudeh
Well known brand in juice manufacturing, chicken, and dairy. Talking of dairy, they are one of the few who use fresh milk in their production. Ever wondered why we don't have locally-made cow butter in the market? That’s because a lot of companies use powdered milk. Hammoudeh Dairy can expand its products with fresh creams, butter, butter milk, and sour cream.
Use of funds: expand product range (including other “milks” be it from oat, almond, soy, chickpea etc.)
Suggested ticker: MILK, HMDE
7- Canary
Well known wafer brand in Jordan. It could learn a lot from a similar company that is publicly listed: Manner AG 🇦🇹 who made €220 mil in revenue last year.
Chocolate is my kryptonite so I tend to find as many excuses to avoid it. One thing I recently found out: more than 1.6 million children3 👦🏿 are being enslaved and exploited to work in cocoa farms in Ghana and the Ivory Coast. 90% of protected forests 🌳 in the Ivory Coast were destroyed in the last 30 years to make way for these plantations (including palm oil and coffee)4. Even if I see a fair trade label, I always remind myself of the cartel like system governing the trade of chocolate. It’s not easy finding real artisanal pure chocolate these days.
Use of funds: expansion, acquisition of other chocolate manufacturers, possibly acquire land or work with farmers in South America or Africa to ensure they are paid a liveable wage.
Suggested ticker: CNRY
8- Bio-Bags
VCs in the region seem to focus mostly on software startups simply due to their scalability (ability to expand rapidly across borders). But we also need them to try to focus in other sectors, maybe bring some much needed innovation and change (agriculture and industry). One example that could solve both our oil dependency problem and littering issue would be biodegradable packaging. I always thought that the best teacher is Mother Nature herself. Maybe a Jordanian scientist can create a bag similar to pomelo fruit skins, something that can be both durable and safe for the environment.
Use of funds: incorporation, R&D
Suggested ticker: ZBLE, PMLO
9- Cinema
The west has Hollywood, the East has Bollywood; maybe it’s time we have our own film industry and call it “Jollywood”.
The country and the region should focus on creating good content (short form, series, or long features) to compete with Turkish, South Korean, and American counterparts.
The media landscape is a fertile space waiting for the right mix of creativity and funding.
Use of funds: studios and equipments, acquire TV channels and maybe a cinema brand
Suggested ticker: FILM, CNMA
10- Agriculture “Machinery”
Jordan is located in the Fertile Crescent, where humanity first developed farming and its sedentary lifestyle. Animals were domesticated and were used to till the land.
Since the 90s, the population of donkeys in Jordan has fallen from 15,000 to less than 2,000 today5. Since they lost their jobs carrying tourists in Petra, a good idea would be to use donkeys once again in working the hilly lands of Jordan to feed the nation and achieve food security.
Use of funds: Donkey farm, plant to produce machinery to be used with said animals
Suggested ticker: HMAR, SNCH, PNZA
The process of going public in the Amman Stock Exchange might sound scary with all the bureaucracy, but it is quicker (~3 months) than others around the world, albeit not as liquid. But that could change.