Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) intends to proceed with an initial public offering (IPO) and apply for admission of its ordinary shares to listing and trading on the Egyptian Exchange (EGX).
The offering is expected to consist of a secondary sale of shares by Greville Investing Ltd. (the selling shareholder) and will include an international offering to qualified institutional investors in several countries, including Egypt, and a retail offering to retail investors in Egypt. Both the international offering and Egyptian retail offering will be offered at the same price per share. Following the combined offering, a closed subscription will take place, whereby the selling shareholder will use a portion of its proceeds from the combined offering to subscribe for a minimum of approximately EGP 650m in newly-issued shares, at the offer price (the closed Subscription) subject to certain conditions.
The company is currently in the process of obtaining the required approvals with regards to the admission of its shares to listing and trading on the EGX, the Combined Offering and the Closed Subscription, including approvals from the Egyptian Financial Regulatory Authority and the EGX. Completion of the combined offering is expected to take place in the fourth quarter (4Q) of 2019, subject to market conditions and obtaining the relevant regulatory approvals.
The company has engaged HSBC and Investec to act as joint global coordinators and joint bookrunners, and CI Capital to act as a joint bookrunner for the transaction. For the avoidance of doubt, HSBC and Investec have been appointed as joint global coordinators and joint bookrunners in connection with the international offering only.
Commenting on the offering, the Group’s CEO Amr Morsy, said, “Today marks a milestone in our corporate development as we look to further expand our business and continue growing our operations across Egypt and the Middle East. Since 2011, the group has expanded to become the fastest growing player in the Egyptian pharmaceutical market, which is characterised by attractive structural growth fundamentals. Through the launching of new products, the acquisition of high potential molecules, and the development of a modern, well-invested production facility, the group’s senior management has, over the years, built an operational platform geared to capturing the industry’s incredible growth potential.”
Although Egypt has the largest population in the MENA region, per capita pharmaceutical expenditure in the country represents less than 14.4% of the average regional outlay, leaving significant room for future growth as the economy continues to expand at a rapid rate and the various new healthcare initiatives under the Egyptian government’s Universal Health Insurance Law come into effect.
Rameda’s growth plans include the roll-out of new products covering major therapeutic areas in Egypt, while at the same time targeting new export markets. In addition, they plan to expand through the acquisition of molecules and opportunistic value accretive acquisitions of companies in Egypt or the MENA region. This strategy will capitalise on the group’s production capacities and maximise value from a portfolio of brand names that have become synonymous with effectiveness and quality.
“We are extremely proud of our hardworking teams across the business as well as their dedication and continuous commitment which has established the group as a trusted brand in Egypt. We will continue to focus on delivering sustainable growth. We believe that our initial public offering will enable us to accelerate our ambitious growth strategy while delivering value for shareholders,” Rameda said.