IPO WATCH- Ibnsina has listed its shares on the Egyptian Exchange (EGX) ahead of itsplanned initial public offering of c. 37.5% of its total share capital via a primary offering of newly issued shares and a secondary offering of existing shares held by current shareholders, the company said in a statement last night (pdf). In parallel, Pharos Holding has submitted its fair value report on Ibnsina to the Financial Regulatory Authority (FRA, formerly EFSA) for review and approval. “We have also concluded our pre-marketing roadshow and have recorded strong interest from investors in London, Frankfurt, the United Arab Emirates, Saudi Arabia, South Africa, and the United States, and look forward to our [transaction] roadshow during the second half of November,” said Ibnsina Executive Chairman Mohsen Mahgoub. Ibnsina is targeting a December close to the transaction, subject to market conditions and regulatory approvals.

Background: Ibnsina is Egypt’s fastest-growing and second-largest pharma distributor serving over 35k clients with products from over 325 local and multinational pharma companies. Proceeds from the transaction will be used to grow Ibnsina’s core distribution business and support its expansion into new, higher-margin revenue streams. The company has a market share of c.19% and expects to close 2017 with revenues in excess of EGP 9.5 bn. Ibnsina has seen revenues grow at a CAGR of 30% over the past five years compared to an industry CAGR of c.17%. Ibnsina’s intention to float is here.

Advisors: Beltone Investment Banking is acting as sole global coordinator and bookrunner for the transaction, while Matouk Bassiouny is acting as counsel to the issuer. Pharos Holding is independent financial advisor, and Inktank Communications is investor relations advisor.

Remember the days when the local market could barely support one offering at a time? Ibnsina is in the market right now, EFG Hermes is in the final days of its Dice transaction, and we rate as “serious” at least five of the dozen or so companies that have said they’re preparing to IPO. We’re liking 2017 very much, thank you, and are increasingly optimistic about the outlook for 2018. Now if only interest rates would come down…