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Tuesday, 28 December 2021

Macro Group scheduled to IPO before 23 January -Omran

Cosmeceuticals giant Macro Group Pharma is scheduled to IPO before 23 January, Financial Regulatory Authority (FRA) head Mohamed Omran told CNBC Arabia yesterday. The regulator gave Macro Group the greenlight on Sunday to offer up to 45.8% of its shares on the EGX, but its approval for the transaction that could see the company valued at EGP 3.5 bn is only valid for a month, a representative from the FRA confirmed to Enterprise.

What happens if Macro doesn’t list by late January? The company would need to get the FRA’s approval for a deadline extension on the listing, according to Omran. Macro could make its EGX debut sometime in the first quarter of 2022, a source familiar with the matter told Enterprise earlier this week, adding that the exact timeline for the IPO has not yet been set. Market conditions are critical to the timing on any IPO.

More IPO deadlines coming up: Nahr Elkhair Development and Investment also has to abide by the FRA’s time limit and pull the trigger on its IPO of up to 61% of its shares before its deadline expires in late January, the FRA representative confirmed. The company received the greenlight for its circa. EGP 500 mn listing alongside Macro Group earlier in the week.

Could IPO deadlines be extended? All companies whose shares have been admitted to trading, but that have not completed their IPOs, could get a six-month extension on their deadlines to pull the trigger on their transactions under a proposal Omran plans to submit to the FRA’s board next week, he said.

BACKGROUND- Macro Group is set to revive its EGX debut in the new year, having postponed its IPO plans in April despite seeing strong appetite from institutional investors. The delay came as a result of concern for the market’s capacity to absorb a packed offerings schedule on the EGX.

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. 

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