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Thursday, 19 November 2020

Consumer healthcare giant IDH considers dual EGX-LSE listing

IPO WATCH- London-listed Consumer healthcare giant Integrated Diagnostics Holdings (IDH) is considering the dual listing of its ordinary shares on the EGX, the company announced in a press release. While the size, value and timeline of the potential listing were not disclosed, the company said it was “currently examining possible transaction structures.” The EGX has not seen an IPO since small cap real estate investment firm Emerald debuted in February before the pandemic took hold.

The dual listing will enhance the company’s liquidity and trading volumes, while its presence on the EGX will improve IDH’s visibility in its main market. “A dual listing on the LSE and EGX would also widen our investor base across an enlarged pool of geographically diversified investors, with increased participation from local retail and institutional investors as well as global emerging markets specialists,” said IDH CEO Dr. Hend El Sherbiny. The listing would also provide Egypt-based investors who are unable to access the London stock a chance to invest in IDH’s business.

The company was the first Egyptian company to debut its stock on the main market at the LSE in 2015 in an IPO that was 11x oversubscribed and offered a 43.5% stake, raising USD 290 mn. IDH was formed in 2012 through the merger of the Al Mokhtabar and AlBorg network of labs and today serves mns of patients annually in Egypt, Jordan, Sudan and Nigeria.

IDH current shareholder structure: Some 25.5% of the company’s shares are held by Hena Holdings, while private equity giant Actis currently holds 21% with the remaining 53.5% being freefloat shares.

Advisors: Renaissance Capital has been tapped as financial advisor for the potential listing, while Clifford Chance will act as legal counsel regarding UK and US law, Ogier regarding Jersey law, and White & Case will serve as counsel on Egyptian law.

*** DR HEND DISCUSSES THE POTENTIAL IPO AND MORE IN TODAY’S EPISODE OF MAKING IT: She charts her path from taking over her mother’s facility, MK Lab, in 2004, to transforming IDH to the diagnostics behemoth it is today, with 450 labs across Egypt, Jordan, Sudan and Nigeria. We discuss what it took to institutionalize and corporatize the business, how important consolidation was to ensure quality healthcare at affordable prices, and the importance of diagnostics in the age of covid-19.

You already have a podcast app on your iPhone and you can listen on Google Podcasts | Anghami | Omny. We’re also available on Spotify, but only for non-MENA accounts. Subscribe to Making It on your podcatcher of choice here.

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