CI Capital offers to register 411.5M shares in EGX

CAIRO – 16 April 2018: The listed companies sector of the Egyptian Exchange (EGX) announced receiving a registration request of 411.5 million shares of CI Capital Holding Company for LE 1 per share.

CI Capital Holding announced in March its intention to issue 43.6 percent of the Group’s share capital on the EGX, amounting up to 246.9 million ordinary shares.

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 Company 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 chose 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.