EFG-Hermes begins its series of IPOs in 2017, starting with Raya Contact Center (RCC) on 11 April to collect EGP 875.7m by putting up 48.99% of its shares.
The public tranche (10% of offered shares) is scheduled at a maximum price of EGP 17.91 per share.
The listing committee of the Egyptian Exchange approved on Sunday the IPO prospectus, with the final price of the IPO set to be determined on 18 April.
The Egyptian Financial Supervisory Authority (EFSA) said that the market value of Raya Holdings at EGP 12 is less than the fair value of its subsidiary, RCC.
In a statement, EFSA said that according to the independent financial adviser study, 75% of the company’s revenues are denominated in US dollars. The study expected the exchange rate to stay at EGP 18 to the dollar. Yet, EFSA stated that if the dollar value against the pound depreciates by 10%, the fair value of the company will decline by 18%.
EFSA stressed that the revenue boom in 2016 was a result of the pound flotation, which does not justify the high growth rates announced by the company.
RCC has expanded recently in Europe and the Middle East, and its revenues in hard cash account for 77% of all revenues, according to data announced at the end of November 2016.