CI Capital announced Thursday that it plans to sell 246.9 million ordinary shares, or 43.6 percent of the company, on the Egyptian Stock Exchange (EGX).
The company is currently working on obtaining regulatory approvals from the Egyptian Financial Regulatory Authority and the EGX and expects to offer the shares for sale during the second quarter of the year, the firm said.
The initial public offering (IPO) will be a secondary sale of shares by CI Capital’s current shareholders. The shareholders will use part of the proceeds to subscribe for up to one billion Egyptian pounds ($56.72 million) in the newly issued shares at the offer price, the firm added.
“There could be as many as seven IPOs this year, Mohamed Farid, chairman of the local exchange told Bloomberg earlier.
There will be an international offering to institutional investors in several countries including Egypt and a retail offering to retail investors in Egypt. The price will be determined through a book building process.
The rest of the proceeds will be used to expand existing activities, enter new fields, enhance the balance sheet and finance the company’s general purposes, the group’s Chairman and CEO, Mahmoud Atalla said in the statement.
CI Capital’s consolidated revenues reached 1.85 billion pounds in 2017 and the consolidated net income after minority interest reached 251 million pounds, up 144 percent and 104 percent respectively, the statement added.
The Egyptian presidency announced in a statement this month that the country aims to put more than 20 companies on the stock exchange to provide additional funding for those companies, which boots their investment expansions.
The latest offerings include energy, petrochemicals, financial services and information technology sectors. The last public offering was in 2005 when the shares of Telecom Egypt, AMOC and Sidi Kerir Petrochemicals Company (SIDPEC) were sold.
The publication added that the EGX posted 13 further offerings (FOs) and four initial public offerings (IPOs) in 2017, recording a 70 percent increase in overall equity capital Market (ECM) transaction volume over 2016, a recent report by PricewaterhouseCoopers (PwC) said.