Cairo – Mubasher: The Investment Banking Division of Egyptian Financial Group Hermes Holding (EFG Hermes) has completed advisory on Ali Alghanim and Sons Automotive Company’s $323 million private placement ahead of the initial public offering (IPO) on Boursa Kuwait. 

EFG Hermes noted that Ali Alghanim IPO marked the Egyptian Exchange’s (EGX) listed firm’s first IPO on the Kuwaiti exchange where it acted as joint bookrunner for the offering, EFG Hermes recently announced.

On 6 June, the automotive firm listed 124.80 million shares, representing 45% of capital, on Boursa Kuwait for KWD 793 per share. Meanwhile, Ali Alghanim and Sons Automotive began trading on Tuesday, 7 June.

The private placement was oversubscribed about 11 times with a total demand exceeding $3 billion. 

Mohamed AbouSamra, Managing Director of EFG Hermes’ Investment Banking Division, said: “The GCC has seen fresh listings recently as countries in the region work to deepen their capital market under the umbrella of wider-scope economic reform plans.”

AbouSamra added: “We expect to continue to capitalise on this uptick in activity, having already lined up several ECM [enterprise content management] transactions in the region in the year ahead.”

It is worth noting that last April, EFG Hermes closed Dubai Electricity and Water Authority’s (DEWA) IPO at $6.10 billion.