Raya Data Center Company is preparing to offer a portion of its shares on the Egyptian Exchange (EGX) during the second quarter (Q2) of 2017. The investment bank EFG-Hermes will take over the position of the manager of the initial public offering (IPO) instead of Beltone.
Reem Asaad, CEO of Raya Data Center, said that the company commissioned EFG-Hermes to manage the company’s IPO in the EGX. Grant Thornton’s office for financial consultancies will be the independent financial adviser, in order to prepare a report about the fair value of Raya’s shares to determine the value of the shares that will be offered.
Sources revealed that the implementation of the offering during Q2 of this year will be done after obtaining the required approvals for the IPO from the EGX and the Egyptian Financial Supervisory Authority (EFSA).
The sources added that the percentage of the IPO will be 35% of the company’s capital. They have anticipated the success of the IPO more than once, as it’s supported by the recovery of trading sizes. The company was forced to postpone the IPO due to the weakness of last year’s trading, when Beltone was taking over the management of the IPO.
The board of directors of Raya Holding for Financial Investment agreed last week on an IPO to its equity in Raya Data Center’s capital according to the terms and conditions for registering set forth by the EGX and securities’ cancellation. Raya Holding’s equity represents 10% of the company’s total property rights, according to the last financial position until 30 September 2016.
Raya Data Center’s IPO is considered Hermes’ first IPO for 2017, amid competition with other IPOs which were offered at the same time.
Sherif Samy, chairperson of the EFSA, expects the EGX will see three new IPOs in the near future. The EFSA is about to approve three companies’ fair value reports, then the IPO prospectus will be approved, and then the IPO can be implemented.
He noted that the three IPOs are for El-Farasha for Printing and Packaging, MM Group—which is managed by Beltone Financial—and Beltone Private Equity Company.