Domty, a food industry company, has begun procedures to publicly offer between 30-40% of its shares on the Egypt Stock Exchange.
Domty Chairman Omar El-Domaty told Al-Borsa newspaper his company signed a contract with EFG-Hermes, which will serve as a financial advisor for the public offering, worth an expected EGP 2bn.
Procedures taken to list the company on the exchange are expected to be completed in the fourth quarter of this year. A total of eight months of studies and assessments for the listing have been already been completed as part of the process.
El-Domaty said that his company’s current capital is around EGP 75m and is expected to double once the IPO is made commensurate with the size of the company’s investments. He said the company will take advantage of the offering’s proceeds to increase the company’s overall production capacity and expand juice production.
El-Domaty said that the offering will be conducted through a capital increase, and studies conducted by the financial advisor will determine the final proportion of the value of the offering, between 30-40% of capital.
In terms of operations and production, the company aims to achieve sales of over EGP 1bn in domestic and overseas markets by end of 2014, compared with EGP 850m in 2013.
Domty production is divided among three products: cheese, milk, and juice. The company aims to increase its production lines to 16 during 2014, up from four in 2012. The expansion will bring total productive capacity to 500 tonnes of cheese, juice, and milk by the end of 2014.
Domty’s share of the cheese market is 32%, with total production reaching 80,000 tonnes per year. The company was founded in 1990 and began exporting to the Middle East and Gulf countries in 2007.