Price of CI Capital’s IPO set at LE 7.70

CAIRO – 22 April 2018: Private offering of CI Capital is oversubscribed 6.1x, reaching LE 1.56 billion, according a Sunday Egyptian Exchange (EGX) statement.

EGX determined on Sunday the final price for the issuance of CI Capital’s shares at LE 7.70 per share.

The trading on the company’s shares will start on Sunday, according to the statement.

The listing of CI Capital Holding’s shares was approved by EGX Tuesday with an issued capital of LE 411.45 million ($23.23 million), distributed over 411.45 million shares and a nominal value of LE 1 per share.

The company’s capital will be issued in four issuances worth LE 10 million, LE 40 million, LE 261.45 million and LE 100 million, respectively.

CI Capital Holding announced in March it planned to issue 43.6 percent of the group’s share capital on EGX, amounting to 246.9 million ordinary shares.

CI Capital clarified that the offering is expected to be launched in the second quarter of 2018.

Initial public offerings (IPOs) of CI Capital consist of a secondary sale of shares by the group’s selling shareholders.

The group clarified that current shareholders will use a portion of the proceeds to subscribe for 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 the country, the statement said.

The company noted that both the international offering and retail offering will be announced 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 leasing, microfinance, asset management and margin lending, as well as to fund its expansion in new areas of non-banking financial services. It also plans to strengthen its balance sheet to support new activities, including merchant banking and general corporate purposes.

The group chose Jefferies International Limited and CI Capital Investment Banking to act as joint global coordinators and book runners 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.

In 2016, the Egyptian government launched an IPO program under the supervision of the Ministry of Investment to offer shares over three to five years in several state-owned companies. The companies operate in fields such as petroleum, services, chemicals and real estate. The program will serve as a main tool to attract local and foreign capital flows to Egypt in order to help boost state finances.