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Thursday, 16 September 2021

Pioneers Holding applies to register two new subsidiaries ahead of EGX debuts

Pioneers Holding submitted a request to register its two new subsidiaries with the Financial Regulatory Authority (FRA) in preparation for their debut on the EGX, the company said in a bourse filing (pdf). The new companies — Pioneers Properties and Gadwa Industrial Development — will focus on real estate and industrial development, respectively, while the parent company will remain the financial services arm.

The company had said it plans to split into three arms in what was at the time a first-of-its-kind move in Egypt. The company hopes the move will create value for shareholders by making its various activities more easily understood by investors. The company had previously said it would spin its three subsidiaries off onto the EGX under three separate tickers in 4Q2020.

Pioneers Properties will have authorized capital of EGP 23 bn and issued capital of EGP 4.7 bn distributed among 1.05 bn shares, with each share costing EGP 5.4. Gadwa Industrial will have EGP 10 bn capital and an issued capital of EGP 2 bn distributed among 1.054 shares with each share amounting to EGP 1.9.

The demerger has been in the works since 2019, when Pioneers Holding announced its plans to restructure into three companies. The company’s shareholders approved plans to split the firm last July.

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