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Egypt’s leading investment bank EFG-Hermes is preparing to manage four IPOs before the end of the year.
"We are planning to manage the offering for two private companies and two government related ones on the Egyptian Exchange (EGX) before the end of the current fiscal year," Mostafa Gad, the co-head of its investment banking division told Zawya.
EFG Hermes will manage the IPO of Fawry, a Cairo-based digital bill payments firm as well as another private company, Gad told Zawya without revealing the name of the second firm.
Fawry plans to list 36 to 40 percent of its shares on Egypt’s stock market.
"Egypt's largest private sector IPO, Fawry is eyeing proceeds of about EGP 2.5 billion which would value Fawry at EGP 4.5 to 5.5 billion. The offering will consist of a substantial international component, with the roadshow set to cover the GCC, European, US, and South African markets."
According to a statement from Fawry, 21 percent of the offering will be allocated for strategic investors and up to 15-19 percent for IPO and private placement.
The private placement will take place from July 27 to 31, while the IPO will start between August 1 and August 5. The company’s shares will be traded on EGX starting August 8.
EFG Hermes is also planning to manage two government IPOs - Banque Du Caire and Alexandria Container and Cargo Handling company – on EGX, Gad said.
Banque du Caire, one of the largest state-owned banks in Egypt, plans to offer around 20 to 30 percent of its shares on the Egyptian exchange by the end of this year, raising between $300 million to $400 million in the process.
Egypt started the IPO programme of state run companies in 2016, offering 15 to 30 percent of listed companies, as part of the country’s economic revival plans and to attract investments to the domestic market.
EFG Hermes reported a strong set of results in the first quarter of the year. Revenues rose 43 percent year-on-year to EGP 1.3 billion on the back of strong performance from core operations.
(Writing by Marwa Abo AlMajd, editing by Seban Scaria)
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