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Monday, 24 January 2022

Moving closer to Macro Group + Ghazl El Mahalla IPOs

The Financial Regulatory Authority (FRA) has given Macro Group the green light to publish the public subscription notice for its upcoming IPO, according to an FRA statement (pdf) dated 20 January. The group will sell up to 264.5 mn shares — or 45.8% of the company — at a maximum price of EGP 6.05 per share, making the IPO worth up to EGP 1.6 bn and valuing the company at as much as EGP 3.5 bn.

The approval comes after the bourse listing committee signed off on Macro listing its shares on the EGX earlier this month under the ticker MCRO.CA.

It’s presently unclear when trading will begin on Macro’s shares. The company would need to apply for an extension if it did not list before a late-January deadline, FRA head Mohamed Omran said in December, but 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. Macro plans to make its EGX debut sometime in the first quarter of 2022, a source familiar with the matter told Enterprise previously, adding that the exact timeline for the IPO has not yet been set. Market conditions are critical to the timing of any IPO. Enterprise reached out to a company representative but did not receive a response before dispatch time.

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 are 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.

OTHER IPO NEWS-

Ghazl El Mahalla FC will list on the EGX in early February, Al Mal reports club president Ali Al Abbasi as saying yesterday. The football club is offering a 67.5% stake in its IPO, which is expected to raise a total of EGP 135 mn after attracting EGP 37 mn from institutional investors during the private placement.

The club is planning to release the IPO prospectus before the end of the month, Al Borsa reports, quoting Mohamed Maher, head of bookrunner Prime Holding.

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. © 2022 Enterprise Ventures LLC.

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