Egypt’s CI Capital Holding, a diversified financial services group, announced its intention to proceed with an initial public offering (IPO) and apply for admission of its ordinary shares to listing and trading on the Egyptian Exchange (EGX), according to a press release.
The group intends to offer up to 246.9m ordinary shares on the EGX, representing up to 43.6% of the group’s share capital.
The offering is expected to consist of a secondary sale of shares by the group’s current shareholders.
Following the offering, the selling shareholders will use a portion of the proceeds they will receive from the offering to subscribe in a closed subscription for up to EGP 1bn in newly-issued shares at the offering price, the company added.
The offering will include an international offering to institutional investors in a number of countries, including Egypt, and a retail offering to retail investors in Egypt.
Both the international offering and retail offering will be offered at the same price per share, which shall be determined through a book building process.
The international offering is being offered in the United States in reliance on regulations under the US Securities Act of 1933.
The group intends to use the proceeds raised from the capital increase to expand its existing businesses, including microfinance, asset management, and margin lending, to fund its expansion in new areas of non-banking financial services and strengthen its balance sheet to support new activities, including merchant banking, and for general corporate purposes.
The group is currently in the process of obtaining the required approvals with regards to the offering, including approvals from Egypt’s Financial Regulatory Authority and the EGX.
Completion of the offering is expected to take place in the second quarter (Q2) of 2018, subject to market conditions and obtaining the relevant regulatory approvals.
Jefferies International Limited and CI Capital Investment Banking are acting as joint global coordinators and bookrunners on the offering.
Norton Rose Fulbright is international counsel to the group, White & Case LLP is underwriters’ counsel, and Matouk Bassiouny is local counsel.
Meanwhile, HC Brokerage and Pharos Securities Brokerage are acting as placement agents.
CI Capital leverages its full-fledged investment banking platform to provide capital raising and merger and acquisition advisory, asset management, securities brokerage, custody, and research.
Through its subsidiary Corplease, CI Capital offers leasing solutions, including financial and operating leases, and sale and leaseback.
CI Capital offers microfinance lending through its subsidiary Reefy, Egypt’s first licensed microfinance institution.