Al Tawfeek Leasing Company (AT Lease) shares will start trading on the Egyptian Exchange (EGX) on Thursday, after the company attracted investors’ interest in both institutional and retail offerings.
The company’s institutional offering is 40.16 times oversubscribed for 14.4m shares at a total value of EGP 95.04m ($5.3m).
“Offerings submitted to the company hit EGP 3.8bn from Egyptian financial institutions, investment funds, and individuals,” the company said in a statement last week, adding that the company has set the price for the offering at EGP 6.6 per ordinary share.
Meanwhile, AT Lease’s IPO was oversubscribed by 28 times, with retail investor subscriptions reaching 134.4m shares of the IPO’s 4.8m shares.
AT Lease earlier in December announced that it plans to publicly offer 24% of the company (19.2m shares).
The company is representing an attractive and very rewarding investment opportunity that provides unique exposure to the growing leasing industry, according to a recent report by Okaz Stockbrokers and Investments.
The report attributed this to the underpenetrated nature of the leasing industry and the robust performance of the company that is showing high growth potential, especially as the fast growth expected for the company makes its share a growth stock, that at the same time has a 100% pay-out ratio, like a yield stock, the research firm added.
“We are targeting new investment opportunities in different sectors, including the financial, industrial, and real estate sectors,” said company executive manager, Tarek Fahmy, on the sideline of a press conference.
AT Lease is owned by Arab Moltaqa Investment by 90%, while Al Barka Bank Egypt owns 10%.
The company announced that it will be backing the share price for a period of one month after trading begins through a stabilisation fund.
The company distributed over 100% of its paid-in capital in dividends to its shareholders last year, Fahmy noted.
AT Lease’s paid-in capital stood at EGP 200m by the end of Q3 2017.
Fahmy expects net income to grow by 20-25% in 2018.
The company’s net profit stood at EGP 43m in the third quarter of 2017.
Pharos Holding is the sole bookrunner and coordinator for the AT Lease IPO.