FRA approves increasing shares offered by e-finance to 26.1%

CAIRO – 11 October 2021: The Financial Regulatory Authority (FRA) agreed Monday to increase the amount of shares offered by “e- finance” to 417.8 million shares, equivalent to 26.1 percent of the company's capital, compared to 257.8 million shares representing 16.1 percent in earlier decision.

E-Finance has asked the FRA to increase the total sale of shares due to increased demand.

E-Finance had intended to offer 16.1 percent of its shares, representing 257.8 million shares, distributed over 80 million shares of its existing shares and offering 177.8 new ordinary shares, but it requested an increase after the high demand for its shares.

The Financial Regulatory Authority said that it has nothing to prevent an increase in the number of shares offered for sale.

The Company set the price range for the offering of its shares on the Egyptian Stock Exchange between LE 12.50 and LE 13.98 per share.

The authority noted the necessity of submitting to the stock exchange pledges that the percentage of the main shareholders in the company shall not be less than the specified percentage, which is 51 percent, in accordance with Article 7 of the rules for listing and delisting securities.

The article also states, that if the total shares held by the main shareholder accordingly are less than 25 percent of the issued capital of the company, then 25 percent of the contributions of the members of the board of directors and the founders of the company shall be completed, for a period of no less than two fiscal years from the date of the offering And a letter from the Misr Clearing Company stating the freezing in accordance with the aforementioned article.

Last Wednesday, October 6, the company opened the door for receiving subscription applications for the private placement tranche, which is scheduled to continue until today, and trading on the company's shares will begin by October 20.

The group’s revenues amounted to LE 1.2 billion during the year 2020, at a compound annual growth rate of 30 percent between 2018 and 2020.

On Oct. 10, EGX said that orders will be received and recorded on the shares of e-finance for financial and digital investments at a maximum price of LE 13.98 per share, from Sunday, Oct. 10, until the end of October 17.

The EGX indicated that the volume of the public offering tranche is 25.77 million shares, representing 10 percent of the total shares offered for sale, which represents 1.61 percent of the total shares of the issuing company.

It indicated that the minimum order is 100 shares, and the maximum number of public offering shares.

The stock exchange added that the volume of the private offering tranche is 232 million shares, representing 90 percent of the number of shares offered for sale, which represents 14.5 percent of the company's total issued shares.

The EGX pointed out that the minimum number of individual investors' requests in the private offering amounted to LE 5 million without a maximum limit, while the minimum for financial institutions is LE 10 million without a maximum limit.

It added that the final price will be determined after the closing of the private offering, on Tuesday, October 12, i.e. three working days before the closing of the door for receiving applications, which ends on Sunday, October 17.

The company’s revenues also recorded revenues of LE 904 million during the first half of this year, and its operating profit before tax, interest, depreciation and amortization amounted to LE 465 million, with a compound annual growth rate of 35 percent between 2018 and 2020.

Operating profits amounted to LE 379 million during the first half of 2021.