Retail subscription is on for Macro Group IPO
Retail investors who want shares of Macro Group's IPO on the Egyptian Exchange can start placing their orders as of this Sunday, 11 April, after the Financial Regulatory Authority (FRA) approved the company’s prospectus yesterday, according to a disclosure (pdf) to the EGX. Would-be shareholders will have until next Thursday, 15 April to get their requests in, the company said.
The group is offering up to 45.8% — or some 264.5 mn shares — in a secondary sale. The sale includes offerings to institutional investors locally and abroad, as well as the retail offering for Egypt only.
The shares have been priced between EGP 5.30-6.15 apiece, with the final share price set to be determined by Monday, 12 April — three days before the bookbuilding period wraps. The indicative price range values the company, pre-offering, at between EGP 3.1 bn and EGP 3.6 bn.
Trading on shares is scheduled to begin on 19 April under ticker symbol MCRO.CA.
Background: 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 1H2021. 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 the investor relations advisor.