Egypt’s leading fintech player, E-Finance announced on Thursday the indicative price range for its initial public offering (IPO) of 257,777,778 ordinary shares on the Egyptian Exchange (EGX).
The offering will consist of a sell-down of 80,000,000 secondary shares and a capital increase of 177,777,778 primary shares, together representing 14.5 percent of the group’s share capital, and will involve a placement to certain institutional investors in Egypt and elsewhere (the Institutional Offering) and a retail offering to retail investors in Egypt (the Egyptian Retail Offering and, together with the Institutional Offering, the Combined Offering). The proceeds of the capital increase will be utilised to fund the group’s future operational expansion plans.
The indicative price range for the shares to be offered in the Combined Offering has been set between 12.50 and 13.98 Egyptian pounds per ordinary share.
The final price announcement will be determined in accordance with a book-building process and is expected to occur on or around October 9, 2021. The Egyptian Retail Offering subscription period is expected to run from October 6, 2021 to October 13, 2021. Trading of the Issuer’s shares on the EGX is expected to begin on or around October 18, 2021.
On September 23, 2021, the Group received registration approval from the Egyptian Financial Regulatory Authority (the FRA). Completion of the Combined Offering is conditional upon receipt of customary regulatory approvals of the FRA and the EGX and on the finalisation of the book-building process.
“E-finance Investment Group is ideally positioned to capitalise on Egypt’s strong market fundamentals and booming digital space, which has witnessed consistently strong growth since the Group’s inception.” Ibrahim Sarhan, chairman and chief executive of E-Finance, said in a statement.
“Through our unique position within the government payments ecosystem along with our Group’s business model that sees us benefit from cross-portfolio synergies and integration across our subsidiaries, E-finance is able to maintain a ubiquitous presence across the Egyptian digital space and its various payment and collection channels. Armed with an optimised corporate structure, clearly defined growth strategies and expanding operational capacity, the Group will utilise proceeds from our IPO to continue capturing new opportunities that unlock and maximise value for governments, businesses, and individuals across the digital space.”
