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Monday, 26 April 2021

Evergrow mulls offering 40% stake in IPO

Egyptian fertilizer company Evergrow plans to offer a 40% stake in an IPO on the EGX in 2023, Chairman Mohamed El Kheshen told Hapi Journal. This appears to be a larger offering than the 30% stake Evergrow said last year it planned to sell in a public offering in 2022. The chairman did not specify how much Evergrow is looking to raise from the sale.

EFG Hermes is quarterbacking the transaction, El Kheshen said.

The company is trying to fix its finances: Evergrow is undergoing a three-month restructuring as it looks to solve its financial problems caused by the EGP float in 2016. Once complete, Evergrow will become a holding company bringing together its six subsidiaries under its umbrella, and is expected to be valued at EGP 15 bn, El Kheshen said. The restructuring will be backed in part by a USD 400 mn facility from a group of regional banks, which will be used to restructure existing debts and finance the completion of third phase of its Sadat City complex, which was held back by the devaluation.

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