FILE - Employees in the EGX following performance of the trading session on December 12, 2017
CAIRO – 15 October 2018: Trading on Sarwa Capital shares on the Egyptian Exchange started Monday, October 15, recording LE 6.67 per share at 1:09 p.m.(CLT), and losing 9.74 percent of its opening price after trading on 12.39 million shares with a turnover of LE 82.68 million.
Sarwa offered around 295.2 million shares on EGX, representing 47.2 percent of the company’s capital, at a price of LE 7.36 per share, reaching a total value of LE 2.2 billion.
Chairman of EGX Mohamed Farid said that the strong demand from Arab and foreign investors to represent 52.3 percent of the total offer is a very strong message that Egypt is on the right path by implementing reforms on all levels; financially, critically and legally.
The stake of non-Egyptians "Arabs and foreigners" recorded 52.3 percent, while the share of Egyptians reached 47.7 percent of the total (public and private offerings).
The company retail offering of 877.4 million shares was oversubscribed 30.1 times, recording demands of LE 6.5 billion. The retail offering subscription period ran from October 3 and ended Wednesday, October 10, 2018.
On October 4, the company announced that its private 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 company added 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.
For his part, Managing Director of Beltone Financial Holding Bassem Azzab said that the offering witnessed a great deal of interest from institutions and individuals both inside and outside Egypt, which was evident in the private offering coverage rates which reached 11 times and the public offering was covered more than 30 times.
Beltone Investment Banking was acting as Sole Global Coordinator and Bookrunner, and Marouk Bassiouny was acting as counsel to the issuer.
Azzab also noted that Sarwa is one of the most attractive companies in the Egyptian market due to several factors including the fact that the free trading ratio in the company will reach about 47 percent after the completion of capital increase, and the rate of growth in profits of the company hit 52 percent on average over the last five years.
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.
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.