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Wednesday, 7 November 2018

Beltone says no irregularities in Sarwa prospectus

Beltone denies allegations of irregularities in Sarwa IPO: Beltone Financial investment banking chief Sobhy El Sehrawy told Reuters yesterday that the IPO prospectus for structured and consumer finance player Sarwa Capital “contained no irregularities.” His remarks were the firm’s first public statement directly addressing still-hazy allegations of wrongdoing during the IPO. The Financial Regulatory Authority (FRA) last week suspended the investment bank’s IPO unit for six months claiming that irregularities had taken place on the Sarwa IPO, which was managed by Beltone. Sources speaking to the local press had said that the FRA’s investigation had been prompted by complaints from investors and not the drop in Sarwa’s share price on the first day of trading. The FRA suspension came a day after an announcement by Beltone’s parent company, Naguib Sawiris’ Orascom Investment Holding (OIH), of intentions to buy a large stake in Sarwa Capital.

Meanwhile, the rumor mill is still running overtime as the regulator has not yet made the irregularities of which Beltone stands accused.

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