Egyptian developer Misr Italia to complete procedures to list 25% on EGX in six months
IPO WATCH- Misr Italia to complete procedures to list 25% on EGX in six months: Property developer Misr Italia is once again considering an initial public offering of up to 25% of its shares on the EGX, and is expecting to finalize all necessary procedures within six months, Chairman Hany El Assal told Al Mal on Wednesday. The company will soon begin the selection process for which investment bank will lead the offering. Misr Italia originally said that it would list 20-25% of its shares in April 2017, but the offering has been delayed for more than two years for unknown reasons.
Misr Italia expects to raise EGP 2 bn from the IPO: The company will use the proceeds to finance ongoing projects, including the EGP 20 bn Il Busco and EGP 10 bn Vinci compounds in the new capital. The company is also developing two “Kai” resorts in the North Coast and Ain Sokhna.
The company has been reluctant to finance its work through bank loans due to high interest rates, but has started probing this possibility to fund the commercial and service portion of its development in the new capital, El Assal told the newspaper yesterday. We noted earlier this year that the developer was in talks with unnamed local banks to arrange a EGP 1.5 bn loan, EGP 550 mn of which will be earmarked for the company’s Cairo Business Park in New Cairo.