Sarwa Capital’s IPO prospectus witnesses no irregularities: Beltone

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Tue, 06 Nov 2018 - 10:17 GMT

A worker is seen at the headquarters office of Beltone Financial in Cairo, Egypt, October 26, 2015. REUTERS/Amr Abdallah Dalsh © Amr Dalsh / Reuters October 23, 2016 09:04am EDT

A worker is seen at the headquarters office of Beltone Financial in Cairo, Egypt, October 26, 2015. REUTERS/Amr Abdallah Dalsh © Amr Dalsh / Reuters October 23, 2016 09:04am EDT

CAIRO – 6 November 2018: Head of Investment Banking at Beltone Financial Holding Sobhy el-Sehrawy said that the prospectus of Sarwa Capital’s initial public offering (IPO) did not contain irregularities, according to Reuters.

He added that his company received 10 mandates from companies for share offerings, acquisitions and other services.

The Financial Regulatory Authority (FRA) accused Beltone of irregularities in the IPO procedure of Sarwa Capital. The board of FRA decided on Thursday, Nov. 1 to suspend Beltone from covering and promoting initial public offerings (IPOs) for a six-month period.

Beltone commented on the decision by saying that FRA’s decisions are surprising and that the company is yet to be informed of reasons for their issuance and their stipulations.

It added that its subsidiary, Beltone Securities Brokerage, continues to conduct normal business operations, adding that all of the group’s companies continue to operate in line with the aforementioned Financial Regulatory Authority (FRA) decision.

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

Trading on Sarwa Capital shares on EGX started Monday, October 15, after offering around 295.2 million of its 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.

The company's 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.

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.

Beltone Financial Holding (known as: Beltone Financial) is a public company, listed on the Egyptian Exchange since April 2008.

Beltone Financial operates within the diversified financial sector focusing on investment banking & brokerage.

It has 20 subsidiaries operating across Egypt, Lebanon and China. Beltone Financial is based in Cairo, Egypt and was established in May 2006.

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