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Tuesday, 6 December 2016

Obour Land issues intention to float, guides on pricing in the EGP 9.00-9.68 range

Obour Land has issued its intention to float, guides on EGP 9.00-9.68 per share with subscriptions for the offering opening this morning. Cheese maker Obour Land ITF’ed yesterday, announcing it will offer 80 mn shares (or c. 40% of its existing share base) on the Egyptian Exchange. Some 56 mn shares have been earmarked for an institutional offering, while the remaining 24 mn shares will be offered to retail investors in Egypt. Shares on offer through the Reg S / Rule 144A-compliant transaction are all being sold by members of the founding Sherif family.

How big is Obour Land: The company had a top line of just north of EGP 1 bn in 9M2016 (claiming 25% y-o-y growth), EBITDA of EGP 153 mn in the same period, and a bottom line of about EGP 110 mn, good for a net margin of 10.4% in the first nine months of the year. Obour Land claims a 39% share of the carton-packed white cheese market and has 27 current SKUs, with plans to diversify into juice and milk products.

What’s the timeline? The subscription period for the offering gets underway today (December 6). The institutional bookbuilding process should close on Friday, December 9. Bookrunner CI Capital will announce pricing of the offering on Sunday, 11 December. The subscription period closes on Moreover, the subscription period will close on 13 December, and the first day of trading is slated for Thursday, 15 December.

Need more information? There’s a fair bit more in the company’s intention to float (pdf). CI Capital is sole global coordinator and bookrunner, Matouk Bassiouny is legal counsel to the issuer, while Norton Rose Fulbright is international counsel. Grant Thornton prepared the FV report.

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