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Monday, 29 March 2021

Macro announces price range for IPO

Macro Group Pharma has priced its initial public offering on the EGX at EGP 5.30-6.15 per share, according to a statement released overnight (pdf). The transaction will see 45.8% — or some 264.5 mn shares — of Egypt’s largest and fastest-growing cosmeceutical company offered in a secondary sale. The indicative price range values the company, pre-offering, at between EGP 3.1 bn and EGP 3.6 bn. The sale will include offerings to institutional investors in Egypt and abroad, as well as a retail offering for investors in Egypt only.

The timeline: Macro is kicking off the bookbuilding process now and will set a final offer price around 11 April. The subscription period for the retail portion of the offering is slated for 8-14 April. The issuer’s shares are expected to be listed on the EGX on or around this Wednesday, 31 March, with trading scheduled to begin on 19 April, give or take. That puts Macro on track to stick with its initially announced timeline of pulling the trigger by late 1Q2021 or early 2Q2021.

What’s Macro? The company, established in 2005, has a market share of just over 23%, or about 3x its closest competitor, with some 124 cosmeceutical products and one neutraceutical; it has nearly 80 additional products ready to roll out in 1Q and 2Q 2021. Macro sells its products over the counter, but physicians are its best allies: The company has over 550 people in its medical sales force that targets physicians and pharmacies nationwide and figures that “85% of sales are estimated to be initially generated via prescription at the physician level.” Despite the challenges of covid-19, Macro last year reported revenues of EGP 430.5 mn (with a 2018-2020 CAGR of 34%) and EBITDA of 187 mn (92% CAGR on the same period). The company’s bottom line last year came in at 135.1 mn, good for a net margin of about 31%.

Advisors: CI Capital and Renaissance Capital are joint global coordinators and joint bookrunners. White & Case is international and (with MHR & Partners) local counsel, while Dechert LLP and Zaki Hashem & Partners are counsels to the joint global coordinators and bookrunners. Inktank is investor relations advisor.

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