|31 October, 2019

Tenth of Ramadan for Pharmaceutical Industries, Diagnostic Reagents (Rameda) announces intention to float on Egyptian Exchange

Completion of the Combined Offering is expected to take place in Q4 2019, subject to market conditions and obtaining the relevant regulatory approvals

Tenth of Ramadan for Pharmaceutical Industries, Diagnostic Reagents (Rameda) announces intention to float on Egyptian Exchange

Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) S.A.E. (the “Company”, and, together with its consolidated subsidiaries, “Rameda” or the “Group”), the fastest growing generic pharmaceutical company among the top players in Egypt, announces today its intention to proceed with an initial public offering (the “IPO” or the “Offering”) and apply for admission of its ordinary shares to listing and trading on the Egyptian Exchange (the “EGX”). The Offering is expected to consist of a secondary sale of shares by Greville Investing Ltd. (the “Selling Shareholder”) and will include: (i) An international offering to qualified institutional investors in a number of countries including Egypt (the “International Offering”); and (ii) A retail offering to retail investors in Egypt (the “Egyptian Retail Offering”) Both the International Offering and Egyptian Retail Offering (the “Combined Offering”) will be offered at the same price per share (the “Offer Price”). Following the Combined Offering, a closed subscription will take place, whereby the Selling Shareholder will use a portion of its proceeds from the Combined Offering to subscribe for a minimum of approximately EGP 650 million in newly-issued shares, at the Offer Price (the “Closed Subscription”) subject to certain conditions. The Company is currently in the process of obtaining the required approvals with regards to the admission of its shares to listing and trading on the EGX, the Combined Offering and the Closed Subscription, including approvals from the Egyptian Financial Regulatory Authority (the “FRA”) and the EGX. Completion of the Combined Offering is expected to take place in Q4 2019, subject to market conditions and obtaining the relevant regulatory approvals.

The Group’s senior management intends to use the net proceeds of the Closed Subscription to fund the Group’s operational expansion, principally through molecule acquisitions but also through opportunistic acquisition of pharmaceutical companies. In the interim, depending on the interest rate environment and outlook at the time, the Group may also pay down a portion of its debt from time to time, although it has no immediate plans to do so. 

The Company has engaged HSBC Bank plc (“HSBC”) and Investec Bank plc (“Investec”) to act as Joint Global Coordinators and Joint Bookrunners, CI Capital Investment Banking S.A.E. (“CI Capital”) to act as a Joint Bookrunner for the transaction. For the avoidance of doubt, HSBC and Investec have been appointed as Joint Global Coordinators and Joint Bookrunners in connection with the International Offering only.  Commenting on the Offering, the Group’s Chief Executive Officer, Dr. Amr Morsy, said:  “Today marks a milestone in our corporate development as we look to further expand our business and continue growing our operations across Egypt and the Middle East. Since 2011, the Group has expanded to become the fastest growing player in the Egyptian pharmaceutical market, which is characterised by attractive structural growth fundamentals. Through the launching of new products, the acquisition of high potential molecules, and the development of a modern, well-invested production facility, the Group’s senior management has, over the years, built an operational platform geared to capture the industry’s incredible growth potential.  Although Egypt has the largest population in the MENA region, per capita pharmaceutical expenditure in the country represents less than 14.4% of the average regional outlay, leaving significant room for future growth as the economy continues to expand at a rapid rate and the various new healthcare initiatives under the Egyptian government’s Universal Health Insurance Law come into effect.  Our growth plans include the roll-out of new products covering major therapeutic areas in Egypt, while at the same time targeting new export markets. In addition, we plan to expand through the acquisitions of molecules and opportunistic value accretive acquisitions of companies in Egypt or the MENA region. This strategy will capitalise on the Group’s production capacities and maximise value from a portfolio of brand names that have become synonymous with effectiveness and quality. We are extremely proud of our hardworking teams across the business as well as their dedication and continuous commitment which has established the Group as a trusted brand in Egypt. We will continue to focus on delivering sustainable growth. We believe that our initial public offering will enable us to accelerate our ambitious growth strategy while delivering value for shareholders.”

© Press Release 2019

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