Indicative price for Sarwa Capital's IPO ranges from LE 7.04, LE 8/share


Tue, 02 Oct 2018 - 08:58 GMT

FILE- Employees in the EGX following performance of the trading session

FILE- Employees in the EGX following performance of the trading session

CAIRO – 2 October 2018: Sarwa Capital announced that it will offer around 295.17 million shares, representing 47.2 percent of total issued share capital, on the Egyptian Exchange (EGX).

Sarwa clarified in a statement that this decision comes after the Egyptian Financial Regulatory Authority (FRA) approved the company’s public subscription note.

The statement added that the indicative price for its IPO ranges between LE 7.04 and LE 8 per share, with an expected offering size in the range of LE 2.1 billion to LE 2.4 billion.

According to the statement, the shares will be offered in two tranches consisting of: (i) a retail offering of 29.52 million shares to individual investors, representing 10 percent of the offering (the Retail Offering). The second tranche is a (ii) a private offering of 265.65 million shares to qualified institutional investors, representing 90 percent of the offering (the Institutional offering).

“Following the offering, the selling shareholders will use a portion of the offering proceeds to subscribe to LE 700 million in a closed subscription at the offer price (the “Capital Increase”),” it stated.

The retail offering subscription period will run between Wednesday, October 3 and October 10, 2018, and share trading is expected to commence on or around Monday, October 15.

Beltone Investment Banking is acting as Sole Global Coordinator and Bookrunner, and Marouk Bassiouny is acting as counsel to the issuer.

“Sarwa concluded a local and international roadshow spanning the US, UK, South Africa and the GCC, with strong interest for the offering from local and international investors,” the statement read.

In August, Sarwa Capital announced its intention to IPO on the EGX.

Sarwa Capital is a provider of consumer and structured finance solutions in Egypt.



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