Final price of Sarwa Capital’s IPO set at LE 7.36/share

CAIRO – 4 October 2018: 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.

The company said in a statement that the 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 retail offering subscription period runs between October 3 and October 10, 2018, and share trading is expected to commence on or around Monday, October 15.

“The Retail Offering is fully covered by a stabilization account which will be settled one month from the first day of trading,” the statement read.

The company will allocate LE 700 million of the yields of public and private offerings to increase its capital by LE 95.11 million, in a closed subscription of selling shareholders at the offer price (LE 7.36).

“Based on the Offer Price, the company’s post money market capitalization is LE 5.3 million,” Sarwa stated.

Earlier this month, Sarwa announced that it will offer around 295.17 million shares, representing 47.2 percent of total issued share capital, on the Egyptian Exchange (EGX).

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.

The shares are 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), (ii) a private offering of 265.65 million shares to qualified institutional investors, representing 90 percent of the offering (the Institutional Offering).

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

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.