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Monday, 27 December 2021

Macro Group revives IPO plans for 1Q2022

Cosmeceuticals giant Macro Group Pharma may make its EGX debut in the first quarter of 2022, a source familiar with the matter told Enterprise, adding that the exact timeline for the IPO has not yet been set. The company yesterday received approval from the Financial Regulatory Authority (FRA) to list on the bourse, according to an FRA statement (pdf), which said Macro Group plans to offer up to 45.8% of its shares in a transaction that could value the company at around EGP 3.5 bn.

The pharma group plans to start the book building process from scratch after the holiday season ends, Enterprise has learned. Macro Group postponed its IPO plans at the last minute in April despite strong appetite from international institutional investors, citing concern for the market’s capacity to absorb a packed offerings schedule on the EGX. The company was about to kick off retail subscription when the listing was postponed, with shares priced at between EGP 5.30-6.15 apiece for a total listing value of EGP 3.1-3.6 bn.

Favorable conditions pushing this forward: “The current favorable market conditions have created the right climate for our company to move forward with our IPO plans, and we look forward to having new shareholders join our journey, the journey of Egypt’s leading cosmeceuticals business,”  Macro CEO Hisham Wasfy told us.

ADVISORS: EFG Hermes is quarterbacking the transaction as sole global coordinator. EFG Hermes and Renaissance Capital are acting as joint bookrunners, while White & Case is counsel to the issuer. Inktank is investor relations advisor.

More IPOs to hit the EGX: The FRA has also given approval for Nahr Elkhair Development and Investment to offer up to 61% of its shares in a transaction that could value the company at EGP 500 mn, according to the statement. Other private-sector companies who we could see make an entry on the EGX in 2022 include Abu Auf and Ebtikar, while others have recently suggested they’re keeping an eye on market conditions.

EDITOR’S NOTE: This story was corrected on 12 January, 2021 to reflect that the EGP 3.5 bn figure refers to the potential value of 100% of Macro Group’s shares, not the 45.8% of shares set to be offered in the transaction. It was further corrected on 18 January, 2021 to reflect that, similarly, EGP 500 mn is the fair value estimate of Nahr Elkhair as a whole, not the 61% set to be offered. 

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