Cairo Financial Holding (CFH) will manage a number of deals, the most prominent of which is the management of three Initial Public Offerings (IPOs) in the fields of education and health care, according to executive director of investment banking at CFH Rasha El-Husseiny. Collectively, these IPOs are worth more than EGP 750m.
El-Husseiny told Daily News Egypt that two of these IPOs are in the education sector. The first IPO is a two-tranche financing deal for a private university expansion in Egypt.
She explained that the first tranche includes a loan worth EGP 250m, which is being negotiated with several banks. The second tranche, also worth EGP 250m, is a private offering to a coalition of Arab and Egyptian investors.
El-Husseiny expects the deal to be completed within six months at most, as the final touches are now underway with the banks and the new investors.
The second deal is for a company that owns a chain of international schools to increase its capital in order to finance an expansion plan.
She pointed out that a coalition of Arab investors plans to finance the increase, adding that the institution is being evaluated to determine the investors’ share of the capital after the completion of the increase, which is expected to range between EGP 200-250m.
The third IPO is for a healthcare company that is now establishing a hospital and in need of liquidity by increasing its capital. She added that a group of Egyptian investors are considering financing this increase in exchange for a share in the hospital.
She added that this agreement includes devolving management tasks to the new investors, noting that the value of the increase is still being determined.
In Egypt, stable-revenue sectors—such as education, health, retail, and food industries—are now the most active in the field of mergers and acquisitions in light of the difficulties experienced by the economy.
She added that the sectors could maintain their financial position for most of the time despite the slowdown in the market or the fluctuating exchange rate.