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Wednesday, 13 November 2019

e-Finance to wrap up legal procedures by the end of the year for its planned IPO

IPO WATCH- e-Finance to wrap up legal procedures for IPO by the end of the year, timing still undecided: Payments platform e-Finance will wrap up by 31 December a handful of pending legal procedures for its planned initial public offering, Chairman and Managing Director Ibrahim Sarhan said yesterday at the Egypt Economic Summit, according to Masrawy.

What needs to be done? The company still needs to wrap up its business plans and expansion strategy and decide on the size of the stake it wants to offer, Sarhan said. The exact size of the IPO will then be determined by the government committee in charge of the state privatization program, he added.

Advisors: Pharos Holding is joint global coordinator for the transaction. Renaissance Capital is acting as e-Finance’s financial advisor and will decide on the timing of the listing after the company has tied up its legal loose ends.

Background: As far as we know, Banque du Caire (BdC) and e-Finance are the first two companies in line to IPO under the state privatization program. Sources said in August that the government will choose between the two companies for which will go first. The offerings were originally expected to take place this year, but Public Enterprises Minister Hisham Tawfik told us in September that the wave will kick off in the new year. We don’t know of a timeline for e-Finance, but BdC is expected to go to market in 1Q2020, the central bank’s governor, Tarek Amer, said earlier this month. As always, remember that timing of any transaction is indicative: Market conditions change.

Corrected on 13 November: Updated to include Pharos Holding as joint global coordinator.

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