By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) has witnessed four initial and secondary public offerings during 2019.
The EGX hosted the offerings of Eastern Co, Speed Medical Co, Fawry for Banking Technology and Electronic Payments, and Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) with a total value of EGP 5.1 billion.
In March, the EGX started the 2019 offerings with the secondary offering of Eastern Co. as part of the state privatisation programme.
The tobacco manufacturer listed 4.5% of its shares, owned by Chemical Industries Holding Company, on the Egyptian bourse.
The public and private offerings included 101.250 million shares at EGP 17 per share, raising a total value of EGP 1.721 billion.
The company’s capital stands at EGP 2.25 billion, distributed over 2.25 billion shares at a nominal value of EGP 1 apiece.
The second share sale in 2019 was made by Speed Medical Co. which offered 6.03 million shares, representing 11.6% of its capital, on the Nile Stock Exchange (NILX) at EGP 3.57 per share.
In April, the initial public offering (IPO) of Speed Medical was executed at a total value of EGP 21.53 million and covered by 0.46 times.
The company’s capital reaches EGP 52 million, distributed over 52 million shares at a nominal value of EGP 1 a share.
Fawry’s IPO led the 2019 offerings, with its share hiking by 31% on its first trading day to advance by EGP 2.02.
In August, the e-payment platform listed 254.629 million shares, or 36% of its shares, on the Egyptian bourse.
The number of shares allocated to the institutional offering in a private placement included 219.2 million shares, representing 86% of the total shares, while the remaining 33.3 million shares were allocated to retail investors in a public offering.
The co-founder of Fawry, Mohamed Okasha, previously said that the company decided to go public in a bid to achieve fair evaluation, more liquidity, and better transparency.
The company’s capital amounts to EGP 192.15 million, distributed over 763.6 million shares at a nominal value of EGP 0.25 per share.
State IPO programme
The state IPO programme has been put on hold for about three years. The government launched the first wave of the programme in March with Eastern Co’s secondary offering of a 4.5% stake.
In March 2018, the government announced a plan to list 23 state-run companies on the EGX with the aim of raising EGP 80 billion.
By early 2020, the EGX is expected to host the IPOs of three state-run companies, namely Alexandria Container and Cargo Handling Co, Heliopolis Company for Housing and Development, and Abu Qir Fertilizers, the country’s public enterprise minister Hisham Tawfik previously stated.