Hermes plans to promote the Initial Public Offering (IPO) of the company in four key markets, the US, the UK, South Africa, and the Gulf and the UAE in particular.
Executive Director at EFG Hermes Moustafa El-Chiati, who also acts as director of Initial Public Offering (IPO) of the Arab Food Industries Company Domty, told Daily News Egypt in exclusive statements the reason for selecting these markets is down to their large financial institutions and individuals with financial solvency, which direct part of their funds to emerging markets, including Egypt.
The Egyptian Exchange (EGX) announced that the registration committee decided in its meeting Wednesday to postpone the approval of Domty’s IPO prospectus report until it receives the report from the independent financial adviser without reservations.
El-Chiati revealed Hermes will promote the IPO during the EFG Hermes One-on-One Conference next week in Dubai, which will be attended by a large number of international financial institutions, making it a good opportunity to promote the IPO.
It is of note that 130 global investment organisations operating in the Middle East and Egypt attended the EFG Hermes One-on-One Conference in Dubai 2015.
El-Chiati confirmed the group research sector has already begun to contact investment institutions and individuals with high solvency under framework of initial promotion and market exploration about the IPO, which showed a positive indication of communications.
Domty plans to offer 122.5m shares, equivalent to 49% of the shares after the IPO, and to increase the capital by EGP 300m in favour of the old shareholders, who will sell rations of their shares during the IPO, according to the announcement Tuesday.
The final offering price will be determined during the process of the shares placement among financial institutions and individuals with high solvency.
The IPO is expected to reach EGP 1.1bn to 2.1bn. The subtraction will be segmented between 90% private placement to financial institutions and 10% public offering to an audience of investors, the source said.
Domty’s ownership restructuring distribution will be 65% for Eldamaty Family and 35% for Saudi investor Yahya bin Laden. The company’s capital worth of EGP 50m is divided into 250m shares with a nominal value of 20pts per share.