Ibnsina to allocate EGP 250 mn from IPO to capital increase, plans to invest EGP 700 mn in five years
IPO WATCH- Ibnsina Pharma will allocate EGP 280 mn of the proceeds from its EGP 1.56 bn IPO towards a capital increase in 1Q2018 and to cover exits by current shareholders, CEO Mahmoud Abdel Gawad told Reuters in an interview on Tuesday. Ibnsina is planning to invest EGP 700 mn over the next five years to grow its network of national distribution centers to 74 from a current 55. The company is anticipating sales this year will rise to EGP 9.6 bn and is guiding on an EGP 11.8 bn top line for 2018, Abdel Gawad said. Net profits for FY2017 are expected to reach EGP 190 mn. The company announced on Tuesday morning that the institutional component of the sale of 40% of its shares was more than 17x oversubscribed, with interest from more than 500 institutions and HNWIs. Ibnsina will have a market cap of EGP 3.9 bn at the start of trading on Tuesday, 12 December.