Mostafa Gad, co-head of EFG Hermes’ Investment Banking Division (IBD), told Daily News Egypt that the company is in the process of implementing 3 to 5 mergers and acquisitions (M&A) worth EGP 1.5bn to 2bn before the end of this year.
He explained that his company serves as a financial advisor for the acquisition over a desalination company.
As for the proposals, Gad said that the government’s initial public offering (IPO) of Alexandria Container & Cargo Handling Company and Banque du Caire are expected before the end of this year. He added that the government IPO programme is linked to a number of factors, such as completing the legal structure for these propositions and the improvement of market performance.
Gad said that, until now, the value of the Alexandria Container & Cargo Handling Company and Banque du Caire has not yet been determined. This is something that will be clarified once their shares are assessed.
He predicted that both IPOs will have good coverage by Arab and foreign institutions in the Egyptian Exchange (EGX). This will reflect the interest of foreigners in capturing promising opportunities in the Egyptian market, in addition to what the offering will represent in providing liquidity for companies which would reflect on their performance in the future.
Gad also revealed that his company is qualifying four private sector companies for the EGX float, expecting two companies to be enlisted before the end of this year, beginning with IT Company.
They will then assess the remaining companies to select the company which is readier to be enlisted on the EGX, since each of the three companies operate in a different field. The last two IPOs will be postponed to the firth half of 2020.
In the first quarter of 2019, EFG Hermes’ IBD team successfully concluded three transactions, spanning equity, M&A, and debt, amounting to $146m.
Kicking off the government’s privatisation programme aiming to strengthen domestic capital markets and attracting foreign investments, the department acted as a sole book runner on the accelerated equity offering of a 4.5% stake in Eastern Company worth $98m.
Leveraging its longstanding relationship as a financial advisor to Suez Cement Group Companies, a subsidiary of Heidelberg Cement, the department acted as sell-side advisor in the $39m divestment of its white cement plant in Minya to Emaar Industries.
Its second successful implementation for the group in less than a year, EFG Hermes has continued to assist in implementing its restructuring strategy.
On the debt front, the team arranged a $8.7m debt facility to a regional financial investor, further solidifying its debt execution capabilities in regional markets.
Aided by the recovery of investor confidence in emerging markets, the department continues to develop a robust pipeline of M&A, equity, and debt deals to be executed through 2019 with multiple equity and debt deals near closing.