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Sunday, 28 March 2021

Taaleem prices IPO above guidance

Taaleem Management Services will sell its shares at EGP 6.20 apiece in an initial public offering on the EGX after receiving Financial Regulatory Authority approval (pdf) on Thursday, the company said in a statement to the EGX (pdf). The company will offer up to 49% of its shares — equivalent to some 357.8 mn shares — which would give it a market cap of c. EGP 4.4 bn, or a bit more than half the size of CIRA, which currently has a market cap of c. EGP 7.5 bn, according to market data.

That’s above the range on which its investment bankers guided the market, having said in a statement that shares would likely be priced somewhere in the EGP 5.48-6.02 range.

The company is looking to place the majority of its shares with institutions, who will get about 46.6 ppt of the 49% of the company on offer, while c. 2.4 ppt of the offering will be placed with retail investors.

Taaleem looks like it could pull the trigger by Wednesday, with shareholder and sale manager CI Capital saying in the disclosure that it has an agreement with an unnamed investor for the purchase of USD 30 mn-worth of shares if the IPO goes through before 31 March. That’s about a fifth of the shares on offer through private placement, by our math.

Advisors: CI Capital is the bookrunner. MHR & Partners in association with White & Case are the counsel for CI Capital, while Matouk Bassiouny & Hennawy are domestic counsel to Taaleem. PwC acts as an auditor for the transaction, and BDO is the independent financial advisor.

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