Taaleem Management Services Company (Taaleem), the education management arm of CI Capital Holding, will concluded its initial public offering (IPO) by the end of the first half (H1) of 2021, a source has exclusively told Daily News Egypt.
The source added that the IPO’s conclusion will have a positive impact on the business through advisory gains.
For the fiscal year (FY) 2019/20 ending in August 2020, Taaleem reported an EBITDA margin north of 50%, and EBITDA growth of 40% while being cash rich and debt free.
Meanwhile, CI Capital, which owns an effective stake of 16.5% in Taaleem, closed the biggest securitisation issuance in its history, worth EGP 2.7bn, during December 2020. Securitisation gains in the fourth quarter (Q4) of 2020 could reach 50% of quarterly profits.
The year 2020 was a challenging one for the investment bank platform, on both the advisory business and brokerage business levels. This was driven by the weak equity market activity, an effect of the novel coronavirus (COVID-19) pandemic, however management expects 2021 to be a year of recovery boosted by rate cuts.
The company undertook its first DCM transaction in the closure of an EGP 1.5bn securitization issuance for Palm Hills in 2020, and intends to focus more on it in 2021. The move is supported by the assumption that there is a huge pent up demand in this area, particularly amid challenging equity capital market (ECM) conditions.
Advisory has a strong pipeline of M&A and IPO, which includes the government privatisation programme. CI Capital has so far been awarded the mandate to manage the Alameda Healthcare and Cleopatra Hospitals Group merger.