CAIRO – 9 October 2018: Sarwa Capital, a provider of consumer and structured finance solutions in Egypt, is mulling new financial instruments, including covered bonds, Managing Director of Sarwa Promoting and Underwriting Ayman El-Sawy said Tuesday.
Sawy statements came on the sidelines of a press conference organized by Sarwa Capital to announce the details of the company’s upcoming initial public offering (IPO on the Egyptian Exchange (EGX).
“The Egyptian market needs fresh financial instruments such as sukuk, covered bonds, and short-term bonds,” he affirmed, revealing that the company’s financing volumes recorded approximately LE 14 billion since 2005.
Sarwa Capital’s private offering was oversubscribed 10.83 times, recording a strong demand of LE 21 billion ($1.2B), with demand coming from over 280 institutional and high net worth investors, the company announced on Thursday. The IPO is scheduled to be closed on October 10, with 29.517 million shares offered.
Trading on the stock is set to commence as of Monday, October 15, under the symbol of SRWA.CA. 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 indicative price for the IPO ranged 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.
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 EGX.
Beltone Investment Banking is acting as Sole Global Coordinator and Bookrunner, and Matouk Bassiouny is acting as counsel to the issuer.