Ordinary shares of Cleopatra Hospital Company S.A.E. (stock code: CLHO.CA) began trading on the Egyptian Exchange (EGX) on Thursday, opening at EGP 9 per share, according to a press statement.
The statement said that trading began after a book-building process that saw the selling shareholder, Care Healthcare Limited, offer 34m shares to international institutional investors and a further 6m shares to Egyptian retail investors.
The institutional offering was 6.73 times oversubscribed and the Egyptian retail offering 28.6 times oversubscribed.
International investors constituted the majority of orders for the institutional offering. In total, the offering was 10 times oversubscribed, generating demand for the 40m shares (or EGP 3,602.7m in total demand).
“EFG Hermes Investment Banking was the sole global coordinator and bookrunner for the offering. Freshfields Bruckhaus Deringer LLP was international counsel to the issuer, while Zulficar & Partners were local counsel. Shearman & Sterling (London) LLP served as international counsel to the sole global coordinator and bookrunner, while Matouk Bassiouny was local counsel,” the statement read. “Cleopatra Hospital’s market capitalisation at the opening bell stands at EGP 1.44bn ($162.2m)”.
The statement noted that the selling shareholder would receive all the gross proceeds from the combined offer, after that the company will offer the selling shareholder the right to subscribe for up to 40m new shares at the offer price, by way of a closed subscription.
Following the completion of the combined offering and the closed subscription, the company expects to have a free float of 20%, assuming no stabilising purchases are made by the stabilising manager and no shares are returned to the selling shareholders at the end of the stabilisation period, according to the statement.