FILE - The Egyptian Exchange
CAIRO – 15 March 2018: CI Capital Holding (CI Capital) announced Thursday its intention to issue 43.6 percent of the Group’s share capital on the EGX, amounting up to 246.9 million ordinary shares, according to a press release.
CI Capital clarified that the Offering is expected to take place in the second quarter of 2018.
IPOs of CI Capital consist of a secondary sale of shares by the group’s current shareholders (the selling shareholders).
The group clarified that current shareholders will use a portion of the proceeds to subscribe a capital increase up to LE 1 billion in newly-issued shares.
The offering will include an international offering to institutional investors in a number of countries including Egypt, and a retail offering to retail investors in Egypt, according to the release.
The release further noted that both of the international offering and retail offering will be made at the same price per share, which shall be determined through a book building process (the “Offer Price”).
The group seeks to use the capital increase resulting from the IPO to expand its existing businesses, including inter alia leasing, microfinance, asset management, and margin lending as well as to fund its expansion in new areas of non-banking financial services, to strengthen its balance sheet to support new activities including merchant banking and for general corporate purposes.
The group has chosen Jefferies International Limited and CI Capital Investment Banking to act as joint global coordinators and bookrunners for the offering.
Norton Rose Fulbright is the international counsel to the group, White & Case LLP is the underwriters’ counsel, Matouk Bassiouny is the local counsel, and HC Brokerage and Pharos Securities Brokerage are acting as the placements agents.
The Egyptian government launched in 2016 an IPO program that offers shares in several state-owned companies over three to five years in fields such as petroleum, services, chemicals and real estate to help boost state finances.
The Initial Public Offerings (IPO) program is conducted under the supervision of the Ministry of Investment.
It covers a period of three to five years, aiming to offer partial stakes in some state-owned companies on the Stock Exchange. It will serve as a main tool to attract local and foreign capital flows to Egypt.
On March 6, Financial Regulatory Authority (FRA) approved the issuing program of BPE Holding for Financial Investments (BCAP) in preparation for the offering of the company’s shares in the Egyptian Exchange (EGX), to be the first company to issue its shares in 2018; the trading starts on April 2.
Meanwhile, Arabia Group for Development and Urban Progress is studying the issuing procedures.
Misr Italia Group announced earlier the issue of its shares in EGX with an amount of $85 million, and the expected issue of Roaya Group’s shares is worth $111 million.
Al Ahram Press Organization further announced a plan to eliminate its losses of LE 1.6 billion, overcome a financing gap of LE 600 million annually, and issue a 25 percent stake in the stock market.
This comes in addition to the expected issue of Banque du Caire and ENPI, as a part of the government's IPOs program, in which the state aims to attract $10 billion in investments during the next three years.
The Egyptian Exchange had six issues in 2017 which were worth LE 4 billion with a 65 percent increase in comparison to 2016’s issues.
Minister of Finance Amr el-Garhy clarified that the IPOs program in the Egyptian Exchange might be a source of additional revenues in the budget of fiscal year 2018/2019.
On February 26, Deputy Minister of Finance for Financial Policies Ahmed Kojak stated that the government targets to increase market capitalization from 20-21 percent of gross domestic product to 50-60 percent by issuing governmental companies in the Egyptian Exchange (EGX).
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