Hassan Allam to offer 44.3% of its Shares on EGX, London

CAIRO – 8 October 2018: Hassan Allam Holding Company announced Monday its intention to offer up to 44.3 percent of its shares on the Egyptian Exchange and London Stock Exchange.

The company said that Renaissance Capital and EFG Hermes will be joint global coordinators for the sale and will be the bookrunners of the initial public offering in partnership with Arqaam Capital.

According to the company's statement, the proceeds of the IPO will go to the development of solar energy projects in cooperation with Light Source BP with the support of Hassan Allam Service.

It will also finance its water project by developing new assets and acquiring a specialized engineering company, as well as supporting the company's continued growth in the construction and building materials sector.

The selling shareholders were the Hassan Allam family, and the International Finance Corporation.

Hassan Allam family owns an 86.2 percent stake of the company, while the International Finance Corporation owns a 13.8 percent stake in the company.

Hassan Allam Holdings works in fields of engineering, procurement & construction, building materials and utilities, and has subsidiaries in Saudi Arabia and Algeria.

EGX witnesses a number of offerings nowadays in light of the government's IPO program.

As per the private companies, EFG Hermes previously announced the completion of the initial public offering (IPO) of Cairo for Investment & Real Estate Development (CIRA) on the Egyptian Exchange (EGX) at LE 1.244 billion.

Moreover, Sarwa Capital announced that the final price of its public offering was set at LE 7.36 per share after the success of the book-building process for the institutional offering of 265.65 million ordinary shares.

In 2016, Egypt launched the government’s IPO program to offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

The state’s IPO program comes in light of the economic reform program adopted by Egypt and 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 (EGX). It will serve as a main tool to attract local and foreign capital flows to Egypt.

It also aims to increase funding to Egyptian companies and maximize the benefit from state assets