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Tuesday, 12 October 2021

e-Finance ups its share offering to 26.1%

State-owned fintech firm e-Finance raised the size of its offering to 26.1% from 16.1%, the Financial Regulatory Authority (FRA) said in a statement (pdf). The company raised the size of offering to institutional investors to 23.5% after demand amid very strong demand from fund and portfolio managers, one of the IPO quarterbacks told Reuters. The company will now offer 417.8 mn shares instead of 257.8 mn originally. The subscription period for the institutional offering ended yesterday.

Meanwhile, the subscription period for the retail offering is ongoing and will continue to run until the close of the trading session on Sunday, 17 October. By our math, the size of the retail offering also appears to have been increased to 2.6% from the original allocation of 1.6%.

The company is expected to announce today how it will price the offering. At the EGP 12.50-13.98 range outlined in its price range release, the IPO will be one of the largest the country has seen in recent years: It could be worth as much as EGP 3.6 bn and value e-finance at up to EGP 22.37 bn.

Advisors: Renaissance Capital, CI Capital and Al Ahly Pharos are quarterbacking the transaction as co-lead managers. NI Capital is acting as the IPO advisor for the listing. Zaki Hashem & Partners has been appointed as counsel to e-Finance, while Norton Rose Fulbright is acting as US counsel to the co-lead managers. Inktank is the investor relations advisor.

IN OTHER IPO NEWS- Another state-owned company could offer shares on the EGX before the year is out, Planning Minister Hala El Said said, according to this morning’s Al Borsa print edition (pdf). El Said declined to name the company, which would go to market as part of the state privatization program. Public Enterprise Minister Hisham Tawfik recently said that e-Finance is the first among five state-owned companies currently prepping up to hit the bourse before the end of the state’s fiscal year next June.

Who are the potential candidates? El Mahalla Spinning and Weaving Company’s Ghazl El Mahalla sports club was previously said to be lined up for a state-led IPO to list around two-thirds of its shares on the EGX as early as this month. Banque du Caire had planned to debut 20-30% of its shares on the EGX in April 2020 but shelved plans due to the onset of the pandemic.

It may not even be an IPO: Already-listed Alexandria Containers, Abu Qir Fertilizers, and Sidi Kerir Petrochemicals have also pushed back sales of additional stakes in the companies.

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