Subscription to the initial public offering (IPO) of the Taleem Educational Services and Consultations (Taleem) commenced, on Sunday, through brokerage firms on the Egyptian Exchange (EGX).
According to the prospectus, investor can place their orders for four working days, until 1 April.
Last Thursday, the Financial Regulatory Authority (FRA) approved the prospectus for Taleem’s IPO, indicating that it has no objection to the prospectus for the purpose of selling a maximum of 357.822 million shares.
This reflects up to 49% of the company’s capital, with the sales taking place through an offering in the secondary market owned by one of the company’s shareholders, at a maximum price of EGP 6.2 per share.
According to the prospectus, the shares will be offered in two tranches, the first of which is a public offering to individuals. This will see the sale of a maximum number of 17.89 million shares, representing 5% of the number of shares offered for sale.
The second tranche is a private placement for financial institutions, individuals and entities with expertise in the field of securities and solvency. This covers the sale of a maximum of 339.93 million shares, representing 95% of the number of shares offered for sale.
The prospectus indicated that one of the qualified investors expressed their desire to buy shares of the private offering tranche, worth $30m, of the total shares of Taaleem through the private placement tranche.
An agreement was signed between the investor, the director of the offering, the company, and the main selling shareholder of the offering.
The Committee for the Registration of Securities at EGX had agreed to list Taleem’s shares with an issued capital of EGP 730.250m, divided over 730.250 million shares, with a nominal value of EGP 1 per share, represented in two issuances on the EGX.
It is noteworthy that CI Capital’s actual stake in Taaleem is about 16.5%.