Cairo – Al Ahly Pharos Investment Banking (“Al Ahly Pharos”), announces the successful closure of the follow-on sale of 162.2 Mn Shares in Telecom Egypt Company (“ETEL”) for a total consideration of EGP 3.7 Bn.
Incorporated in 1999, ETEL is Egypt’s leading telecom services provider, and owns a 45% stake in Vodafone Egypt. Capitalizing upon its unparalleled nation-wide reach and ETEL’s recent aggressive rebranding phase, as well as the launch of its mobile phone services under its brand name “WE”, ETEL has been able to achieve stellar financial performance and growth, with total revenue and net income reaching EGP 44.3 Bn and EGP 9.2 Bn in 2022, respectively.
Al Ahly Pharos acted as the joint global coordinator and bookrunner on behalf of ETEL’s largest shareholder, the Ministry of Finance, which, prior to the execution of the Transaction, held an 80% stake in ETEL. Zulficar & Partners Law Firm was the sell-side legal advisor led by the founding partner and head of the capital markets department Mr. Anwar Zeidan.
The sale was executed on 162,171,802 shares of ETEL, representing 9.5% of the total shares, for a total consideration of EGP 3.7 Bn, where Al Ahly Pharos has successfully attracted a diverse range of foreign and local investors during the subscription process. It is noteworthy to mention that additional shares of up to 8,535,358 shares, representing 0.5% of the total shares, were allocated to ETEL’s employees and shall be executed over the coming days.
The follow-on sale of ETEL marks the second successful divestment under Egypt’s IPO program this year. Most recently, Al Ahly Pharos Investment Banking served as the exclusive sell-side advisor to Chemical Industries Holding Company S.A.E. in its sale of Pachin to UAE’s National Paints for USD 24.9 Mn, as well as acting as the joint global coordinator and bookrunner in the follow-on offering of both Abu Qir Fertilizers and Chemical Industries Company (ABUK.CA) and e-Finance For Digital and Financial Investments SAE (EFIH.CA), solidifying Al Ahly Pharos’ position as one of the leading advisors in the ECM spectrum. Al Ahly Pharos is proud to have helped facilitate the first milestones of Egypt’s IPO program, substantiating Al Ahly Pharos commitment and efforts towards spurring private investments in pivotal sectors to serve the Country’s IPO program.
About Al Ahly Pharos:
Al Ahly Pharos Investment Banking is the investment banking arm of Al Ahly Financial Services (AFS). AFS is the fully-fledged Investment Bank affiliated to National Bank of Egypt Group. AFS is involved in investment banking, securities brokerage, research, and asset management.
Al Ahly Pharos Investment Banking offers the full range of financial services in both Equity and Debt Capital Markets. Equity Capital Markets platform offers financial advisory, promoting and underwriting of securities of primary and secondary equity offerings, mergers and acquisitions advisory. Debt Capital Markets platform offers debt advisory and structuring, promoting and underwriting of debt securities, and issuance of conventional and sharia-compliant products.
