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Sunday, 6 February 2022

Macro Group sees strong demand from retail investors ahead of IPO

The retail component of Macro Group Pharma’s IPO was 6.49x oversubscribed at the close of Thursday’s trading session, Amwal Al Ghad reports, citing unnamed sources. Retail investors have requested some 85.9 mn shares so far, with subscription set to close at the end of tomorrow’s trading session. Macro wrapped up its private placement to institutional investors, which was 1.8x oversubscribed, last Wednesday.

Well on the way to an EGP 1.3 bn share sale: Shareholders are offering up to 45.8% of the company (c. 264.5 mn shares) in the IPO, with 95% (c. 251.3 mn shares) earmarked for institutional investors and 5% (c. 13.2 mn shares) are available in the retail offering. At the EGP 4.85 share price confirmed by Macro in a statement (pdf) last week, the IPO is worth some EGP 1.3 bn, valuing the company at around EGP 2.8 bn.

Shares should start trading “on or around” this Thursday under the stock ticker MCRO.CA, according to Macro’s statement.

About Macro: The company is a huge player in its segment, with a more than 23% share of the cosmeceutical market in 2020 and a portfolio of 112 shop-keeping units (or SKUs) and generates sales by targeting physicians and pharmacies nationwide. Macro turned in a top line of EGP 417 mn in 9M2021 (up 37% year-on-year) and EBITDA of EGP 172 mn (+30% y-o-y) in the same period.

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. Dechert and Zaki Hashem & Partners are counsel to the joint bookrunners, while PwC has been appointed external auditor. Inktank is investor relations advisor.

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