Sigma Capital will launch two initial public offerings (IPOs) by mid 2016, Chairman Ahmed Marwan told Daily News Egypt Monday.
The IPOs are for two companies, one operating in the pharmaceuticals and the other in the construction sector. Marwan however refused to disclose any names. The total amount for the IPOs will be EGP 200m.
Marwan’s statements were made on the sidelines of a media roundtable that took place in the presence of company representatives at the company’s headquarters in Giza.
Sigma will increase its issued capital from EGP 69m to EGP 100m in 2016, and is also set to launch new leasing and microfinancing companies during the same year.
As for the structure of the new companies, they will either be created by acquiring existing companies operating in each of the fields, or acquiring a new license for adding a new activity to the company, or partnering with existing firms.
“We are currently studying those potential options,” company CEO Maha Baligh said.
As for the initial budget to be issued for each company, Marwan indicated that EGP 7.5m will be allocated for each, provided that the amount will not be covered by the capital increase to be made next year.
As for other plans the company has for 2016, Baligh said they aim to establish a number of investment funds in the upcoming period in cooperation with a number of foreign financial institutions.
Sigma is currently researching the launch of an investment fund in partnership with the Asian investment bank, CIMB, which is expected to take place next year. It is set to increase to 12 branches in 2016 up from the current seven.
Last month, Sigma Capital presented a number of investment opportunities in the Egyptian market to a number of Asian and European investors in a conference held by CIMB.
According to Baligh, they received great attention towards direct investment in light of the high return rates, especially from the infrastructure and renewable energy sectors.
Sigma Capital is an Egyptian holding company established in 2000. Its line of services range from securities brokerage, asset management, and investment banking and custody with new lines to be established in private equity and insurance brokerage.