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Monday, 2 July 2018

CIRA to re-list on EGX in October, offer 35-40% of the company in international and domestic offerings

EXCLUSIVE- CIRA relisting to take place in October: Cairo Investment and Real Estate Development (CIRA) will relist shares on the EGX in October, sources close to the transaction told Enterprise over the long weekend. The firm is planning offer new shares equivalent to 35-40% of the company’s equity. Some 80-90% of the share sale will be put up in an institutional offering, with the remainder set aside for domestic retail investors. The company has already hit the road to test appetite for the offering in the GCC and the Europe. CIRA will reportedly use a portion of the proceeds of the transaction to pay Abraaj Group for exiting its 35% stake in the company, the sources added. A source at the embattled Dubai-based private equity firm had told us last month that it had completed the exit of CIRA, saying that “Abraaj exited with a healthy return before any potential IPO so as to avoid IPO-related lockups that would impact the investment IRR.” CIRA’s shareholders are set to meet tomorrow to sign off on the relisting.

Advisers: EFG Hermes is global coordinator and bookrunner for the transaction, we’re told. White & Case is said to have been tapped to serve as legal advisers on the international offering, while Zulficar & Partners is domestic counsel to the underwriter.

Restructuring ahead of the share sale: CIRA has also spun off its real estate investment arm ahead of the transaction, our sources say. Its education arm owns and operates 24 schools in addition to Badr University. El Tamimi & Co. acted as local legal adviser on the spin-off, which is also subject to shareholder approval at a meeting tomorrow.

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