Fawry, an Egyptian e-payment network, started procedures to offer a large stake of the company on the Egyptian Exchange (EGX), with EFG Hermes as manager of the offering.
Daily News Egypt was informed on Saturday that the volume of planned offering will be between 36% and 40%. The planned offering will be distributed as follows: 21% for strategic investors and up to 15-19% for initial public offering (IPO) and private placement.
The private placement is scheduled to take place from 27 to 31 July, while the IPO will start between 1-5 August, while the company’s shares will be traded on EGX starting from 8 August.
EFG Hermes will start promotion of the company’s shares in the Egyptian market and then in the UAE and London over the next few days. The promotion campaign will also include the GCC, Europe, and South Africa.
Sources close to the offering operation told Daily News Egypt that the IPO would be a fixed price offering.
Under fixed price, the company going public determines a fixed price at which its shares are offered to investors. The investors know the share price before the company goes public – rather than book building offering.
It is estimated that the company’s valuation took into consideration the strong growth rate of sales and profits over the past years.
An alliance of Helios Investment Partners, the Egyptian-American Enterprise Fund, EFG Hermes’ MENA LTV Fund, and the International Finance Corporation owns a majority stake in Fawry valued at $100m since 2015.
The IPO could see partial and full exits of 10 major shareholders.