By: Heba El Kordy

Cairo — Mubasher: The Egyptian Exchange (EGX) has witnessed four initial public offerings (IPOs) in 2018 with a combined value of EGP 5.6 billion, up 40% from the previous year.

The new share sales increased the listed firms on the Egyptian bourse to 226, according to a survey conducted by Mubasher.

Over the course of the year, the EGX hosted the offering of B Investments Holdings, CI Capital Holding, Cairo Investment and Real Estate Development (CIRA), and Sarwa Capital Holding for Financial Investments.

The financial and banking sector acquired the biggest share of the new IPOs, except Cairo Investment listed on the real estate sector.

In October, the higher committee of state-run IPOs programme has postponed the sale of a further 4.5% stake of Eastern Co’s shares on the EGX, scheduled to be the first of the government’s IPO scheme.

B Investments

In March, the EGX started the 2018 IPOs with B Investments, formerly known as BPE Holding For Financial Investments, which marked the bourse 223rd listed firm and covered 84.4x times.

The Egypt-based private equity company’s public and private placements netted EGP 463.6 million through 43.13 million shares.

CI Capital

The second share sale in 2018 was made by CI Capital in April and covered 29.5 times.

CI Capital’s IPO has been implemented at a value of EGP 1.7 billion through 225.6 million shares, or 54.84% of the company’s capital at EGP 7.7 a share.

Cairo Investment

In October, the Egyptian bourse saw the listing of Cairo Investment, which marked its 225th firm.

The company’s offering covered 18.87 times while its private and public placements amounted to EGP 1.243 billion.

Foreign investors’ share of Cairo Investment’s private offering accounted for nearly 70% after privatisation.

Cairo Investment’s stock jumped by 17% at the beginning of its first trade on the EGX to EGP 7.03.

Sarwa Capital

In mid- October, the EGX hosted the share offering of Sarwa Capital which dipped as much as 11% at its first trades after the Financial Supervisory Authority (FRA) said that the company’s IPO process had violated the capital market’s regulations.

Then, the Egyptian financial regulator suspended Beltone Financial Holding’s IPO unit from carrying out any activities came on the back of finding that Sarwa Capital had been exposed to irregularities in IPO procedures.

Sarwa Capital’s IPO and the private offering had been implemented at a combined value of EGP 2.17 billion.

The IPO had been executed through 29.5 million shares, or 4.7% of the company’s capital at a value of EGP 217.2 million, the Egyptian bourse highlighted.

While the firm’s private offering had been conducted through 265.6 million shares, or 42.5% of the company’s capital, at a total value of EGP 1.9 billion.

State-run IPOs

The Egyptian government has put the IPOs of state-run firms on hold in October due to the fluctuation of the global equity markets and the emerging-market crunch.

In March, the finance ministry announced plans to float 23 state-owned companies on the EGX at a total market value of EGP 80 billion over the coming period.

The state’s IPOs programme was aiming to expand ownership base, raise the EGX’s market capitalisation, in addition to increasing trading value and volume.

Translated by: Ahmed Shehata