MM Group Industrial & International Trade intends to continue its plans to list its shares on the Egyptian Exchange (EGX) in the coming weeks after obtaining the approval of the Egyptian Financial Supervisory Authority to study the fair value for offering 25% of the company’s capital on the EGX.
Chairperson of the group, Khaled Gamal Eldin Mahmoud, told Daily News Egypt that the group has inaugurated a Belarusian tractor assembly line during the visit of the Belarusian president to Egypt. The company has been the exclusive dealer for the tractor since 1990. The new line will produce 2,000 per shift on an annual basis, which could be boosted to double the figure if operated on two shifts.
Mahmoud said that the new factory will rely on 45% domestic components.
He added that the company will assemble tractors of 20-120 HP brands of Belarus and Solis.
Mahmoud pointed out that the group’s sales of luxury cars were not impacted in 2016, but rather increased by 30%, expecting to see even more sales in 2017. He explained that his target group is not impacted by price hikes.
He said that the plan to offer 25% of the company’s capital is pending the approval of the Egyptian Financial Supervisory Authority (EFSA) on fair value.
Beltone Financial is the offering director, while Zaky Hashem & Partners Law Firm serves as the legal advisor and BDO as the financial advisor.
Mahmoud explained that the company aims to exploit IPO proceeds to finance future expansion in a number of sectors.
The group has 24 subsidiaries operating in fields of commercial agencies to Samsung and Vodafone through 34 retail stores across the country, in addition to two exhibitions selling luxury cars, including Jaguar, Ferrari, Maserati, Land Rover, Bentley, Polaris, Victory, and Ducati. The group also owns a service centre in the 10th of Ramadan city and a rice straw recycling facility.
The company has a capital of EGP 396m, distributed among 396 million shares, with a nominal value of EGP 1 per share.