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Thursday, 13 January 2022

One step closer to Macro’s IPO

Cosmeceuticals giant Macro Group’s shares will be listed on the EGX today after receiving the blessing of the bourse’s listing committee yesterday, according to an EGX statement (pdf) yesterday. The listing will pave the way for company’s plan to offer up to 45.8% of its shares (which will trade under the stock ticker MCRO.CA) in a transaction that could value the company at as much as EGP 3.5 bn, the Financial Regulatory Authority (FRA) said last month.

When will Macro go ahead with the sale of shares? The FRA gave Macro the green light last month to offer shares to investors, setting a late-January window for the transaction. Macro plans to make its EGX debut sometime in the first quarter of 2022, a source familiar with the matter told Enterprise in December, adding that the exact timeline for the IPO has not yet been set. Market conditions are critical to the timing of any IPO. The FRA has lately telegraphed that it could be flexible on the deadline to complete transactions for companies that have listed their shares, but not executed sales.

Background: Macro Group postponed its IPO plans in April 2021 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, valuing the company at EGP 3.1-3.6 bn. Sources told us last month that the company would start the book building process from scratch following the holiday season.

Advisors: Our friends at 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 to Macro.

More IPOs on the horizon: Our friends at healthy foods player Abu Auf is looking to make its EGX debut in 2Q, while non-bank financial services outfit Ebtikar has also signaled it is looking to IPO, but refused to give us guidance on timing when we recently asked. The FRA last month gave approval for Nahr Elkhair Development and Investment to list up to 61% of its shares on the EGX, with a fair value estimate of EGP 500 mn.

IN OTHER CAPITAL MARKETS NEWS-

Real estate firm Marseilia Group’s shares will be listed on the EGX from next Thursday, 20 January, after making the jump from the small-cap Nilex, the EGX statement added. The EGX Listing Committee approved the company’s EGP 28.8 mn capital increase, pushing its capital just north of the EGP 100 mn capital requirement for companies to list on the EGX, the bourse said In a separate bulletin yesterday. The increase will be financed by annual and retained earnings.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

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