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CIRA to float 38% of its shares on EGX

Mon, Aug. 27, 2018
CAIRO – 27 August 2018: Cairo for Investment and Real Estate Development (CIRA or the Issuer) announced Monday its intention to offer about 37.84 percent of the company’s outstanding share capital on the Egyptian Exchange (EGX).

CIRA clarified that it will offer up to 207.26 million ordinary shares, which are currently owned by Social Impact Capital LTD (the Main Selling Shareholder) and other minority investors (collectively, the Selling Shareholders).

“The offering will include an international private placement to institutional investors outside the United States, Australia, Canada and Japan in reliance on Regulation S under the U.S. Securities Act of 1933, as amended (the Securities Act) and a private placement to certain qualified institutional buyers in the United States pursuant to Rule 144A of the Securities Act (such private placements, the Institutional Offering),” the statement read.

It also added that the offering includes an Egyptian public offering to retail investors in Egypt (the Egyptian Retail Offering, and together with the Institutional Offering, the Combined Offering).

The company stated that the issuer will offer to the Main Selling Shareholder the right to subscribe to new shares at the Offer Price (the Closed Subscription) with a minimum value of LE 100 million and a maximum value equivalent to the value of up to 35 million ordinary shares (the Closed Subscription Shares).

The Financial Regulatory Authority (FRA) sent to the company on August 16 a preliminary non-objection to be listed on EGX and an offering of the shares in the Combined Offering.

“CIRA has always demonstrated leadership across the Egyptian education sector through institutional practices that prioritize a balanced scalable impact and profitability, as well as governance and transparency while ensuring quality in its educational offering through its various brands,” CIRA’s Chief Executive Officer Mohamed el-Kalla.

“Our aim is to utilize the IPO to further enhance our robust growth plan in both higher education and the K-12 segments with a wider geographic footprint and versatile offering that builds on the current societal needs both on and off campus,” he added.
CIRA is a private education provider in Egypt, targeting both the K-12 and the higher-education segments in six governorates.

Egypt launched the government’s IPO program in 2016 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 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 (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.
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