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Sunday, 23 September 2018

CIRA share price set at EGP 6 after successful 10.36x institutional offering

**#4 IPO WATCH- CIRA prices IPO at EGP 6 per share; offering is more than 10x oversubscribed amid heavy demand from institutional investors: Leading private sector education outfit Cairo for Investment and Real Estate Development (CIRA) has priced its IPO at EGP 6.00 per share, above the midpoint of the EGP 5.45 to EGP 6.30 per share on which it had previously guided. That’s enough to give the company a market capitalization of EGP 3.29 bn at the opening bell on 1 October, when the company’s shares are due to begin trading on the EGX.

International demand for CIRA’s shares was heavy, with the institutional offering of nearly 193 mn shares being 10.34x oversubscribed, the company said in its final price announcement (pdf). CIRA is offering some 207 mn shares (or about 38% of the company) during the IPO, which includes a retail offering for which the subscription period is due to end on Tuesday, 25 September. Proceeds from the transaction will be earmarked for growth in Egypt and beyond, the company has previously said.

On a related note, the New Urban Communities Authority (NUCA) has approved selling CIRA 120k sqm plot of land in New Mansoura to build a school there, Al Shorouk reports.

Advisers: EFG Hermes is sole global coordinator and bookrunner for the transaction. Al Tamimi & Co. is acting as the issuer’s local counsel, while Zulficar & Partners is domestic counsel to the underwriter. White & Case is international counsel to the issuer, while Gide Loyrette Nouel is doing duty for the global coordinator and bookrunner. Inktank Communications is serving as investor relations advisor to CIRA.

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