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Act Financial plans EGX listing in Q2-24 after decade of continuous work – Abdelaziz

Act Financial plans EGX listing in Q2-24 after decade of continuous work – Abdelaziz
Mostafa Abdelaziz, Managing Partner at Act Financial

By: Abdel Razek El-Showeikhy

Cairo – Mubasher: Act Financial is in negotiations to acquire equities in four companies that plan to list their shares on the Egyptian Exchange (EGX), Managing Partner Mostafa Abdelaziz told Mubasher in an interview.

Abdelaziz noted that the targeted firms are in the medical and logistics fields, adding that Act Financial intends to list its shares on the EGX during the second quarter (Q2) of 2024.

This step comes after the EGX’s recent approval for the listing of Act Financial, which should be followed by the required pass from the Regulatory Financial Authority (FRA) in Egypt.

The official told Mubasher: “Listing the company on EGX has been a dream that came true after 10 years of continuous work. We have obtained the temporary listing approval, and currently, we are completing the required procedures for the listing with the FRA. This is a huge step in the company’s success journey.”

Abdelaziz said the FRA shall determine the equity set for the offering as well as the price, value, and volume, stating that the offered equity would range between 25% and 30% at a value from EGP 700 million to EGP 1 billion.

The initial public offering (IPO) will be for all investors before Act Financial commences a private placement of 75-80% for institutions and individuals with solvency. Meanwhile, the IPO proceeds will be used to increase the capital.

“We aim at achieving big growth in the coming five years, including the company’s investment performance which was recently seen in indicators like the return on investment (ROI) that reached 50%,” according to the Managing Partner.

He added: “The average growth of return on equity (ROE) hit nearly 42% within one year. As we plan to increase the company’s capital and investments, we hope the ROE could reach up to 50% in the coming years.”

Act Financial does not focus on a certain sector, but on investment opportunities regardless of their field, according to Abdelaziz, who said the company invested in four or five different sectors in the past years and we have opportunities in various segments.

He added that the growth of Act Financial is a result of investing in a number of companies since incorporation, some of which formed a full exit like in Six of October Development and Investment (SODIC) or partial exit such as Ezz Steel where it decreased the ownership equity to 0.51% earlier in 2024, while other investments are not disclosed yet.

Abdelaziz concluded that over the past four years, Act Financial studied several unlisted companies that reached 120 entities, but the conditions were not suitable for the IPO unlike the current time, which encouraged the investors to enter as partners not just IPO advisors.