E-finance Digital and Financial Investments, a state-controlled payments firm in Egypt, has launched an IPO for retail investors, reported Reuters.
Beginning on 6 October, another tranche for institutional investors was launched that will close today.
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By GlobalDataThe size, as well as the final price of the subscription, is likely to be revealed two days later, the news agency reported, citing an official from one of the banks acting as managers of the offering.
Set up in 2005, E-finance serves as the only entity authorised to run the financial network of the government, including collection transactions, and processing and settling of payments.
E-finance is offering to sell 257.8 million shares, which translate to 16.1% of the total, to the public. These shares also consist of 177.8 million new shares and 80 million shares owned by current shareholders. These shares are being sold at a maximum price of E£13.8 ($0.88).
Out of these shares being sold, 90% of them will be intended for institutional investors, and the remaining for retail investors.
As per the E-finance’s 2019 annual report, its present shareholders are three state-owned banks: National Investment Bank that holds 63.64% stake, and the National Bank of Egypt and Banque Misr, with each holding with 9.09% stakes.
The company reported a consolidated net income after taxes of E£275.6m in the first six months of 2021 on revenues of E£904.4m.
In the year-earlier period, its net income stood at E£152.5m and revenues at E£500.6m.
CI Capital Investment, Al Ahly Pharos, Renaissance Capital are the three banks serving as managers of the offering.