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Monday, 18 October 2021

Foreign institutions lining up for e-Finance’s IPO –Sarhan

Foreing investors had heavy appetite for shares of e-Finance, the state-owned fintech platform and payments infrastructure provider whose ongoing offering on the Egyptian Exchange is set to be the largest IPO that Egypt has seen in years. The bankers quarterbacking the transaction have yet to release official figures, but you can expect to hear that foreign fund managers accounted for about 70% of demand for the offering to institutional investors, according to a chat last night between e-Finance Chairman and CEO Ibrahim Sarhan and nighttime talkshow queen Lamees El Hadidi (watch, runtime: 6:50). The institutional offering was covered about 6.8x over, Sarhan added.

Look for trading of e-Finance shares to begin on Wednesday, Sarhan told El Hadidi. Shares will open at EGP 13.98 each, meaning the IPO is worth about EGP 5.8 bn (USD 367 mn).

The offering to individual investors was as heavily oversubscribed as you would expect given (a) intense retail interest and (b) the small size of the offering to folks who aren’t running institutional or quasi-institutional money. The retail component of the IPO officially closed yesterday 61.4x oversubscribed, the EGX said in a bulletin at the end of trading. Retail investors placed bids for a total of 1.6 bn shares. The company offered just 25.78 mn shares to individual investors. The IPO will see e-Finance selling 417.8 mn shares (or 26.1% of the company). e-Finance had raised the size of its offering from 257.8 mn shares (16.1%) last week.

Advisors: Renaissance Capital, CI Capital and Al Ahly Pharos are quarterbacking e-Finance’s IPO 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.

Ahead of its highly anticipated EGX debut, e-finance has launched a digital healthcare service platform with the Universal Health Ins. Authority (UHIA), according to a company statement (pdf). The company, named eHealth, is a platform that provides comprehensive and integrated services to the healthcare sector, from managing and operating the daily operations of ins. and health technology systems to technical support services and consulting. The platform will manage and operate the tech backbone of the government’s universal healthcare scheme.

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