Orascom offers to buy non-controlling stake in Sarwa Capital

CAIRO – 31 October 2018: Orascom Investment Holding applied to the Financial Regulatory Authority for an approval to make an optional purchase offer to acquire a non-controlling stake in Sarwa Capital Holding.

In a filing to the Egyptian Exchange (EGX), the financial authority announced that Orascom intends to make an optional purchase offer for two cases: the first is to acquire 216.03 million shares at the offer price of LE 7.36, and the second is to acquire from 144.02 million shares to less than 216.03 million shares at a price of LE 6.62 per share.

According to the statement, Orascom Investment has the right to accept or reject the purchase of shares offered if the number of shares came less than 144.02 million shares.

Trading on Sarwa Capital shares on EGX started Monday, October 15, after offering around 295.2 million of its shares on EGX, representing 47.2 percent of the company’s capital, at a price of LE 7.36 per share, reaching a total value of LE 2.2 billion.

The company retail offering of 877.4 million shares was oversubscribed 30.1 times, recording demands of LE 6.5 billion. The retail offering subscription period ran from October 3 and ended Wednesday, October 10, 2018.

On October 4, the company announced that its private offering was oversubscribed around 10.83 times, recording a strong demand of c.LE 21 billion ($1.2B), with demand coming from over 280 institutional and high net worth investors.

The company added 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 August, Sarwa Capital announced its intention to issue IPO on the EGX.
Sarwa Capital is a provider of consumer and structured finance solutions in Egypt.

As per Orascom Investment Holding, it works in the fields of GSM, media, cables and mobile communications in Egypt, North Korea and Lebanon.