Arabia Investments Holding (AIH) is planning to split into two separate holding companies that will be listed on the Egyptian Exchange (EGX), a source has told Daily News Egypt.
The source also said that this will take place by the end of the first quarter (Q1) of 2022, with one company to include all the traditional investments (Construction and Materials). The other company will include all non-banking financial services (NBFS) investments.
This will come in addition to creating a single corporate identity for all the subsidiaries in the group, through launching a single corporate customer-facing brand.
AIH is also planning to establish a fully-fledged NBFS company in the near future, by adding new activities including brokerage and mortgage financing.
The source added that AIH is planning two separate sukuk issuances, one that is convertible, while the other callable. One issuance will be finalised by Q3 of 2021, and will amount to EGP 200m-EGP 300m.
“The company aims to double the size of the business over the next three years, asit aims to accelerate its growth, and create value through building an efficient and flexible capital structure,” the source said. “It is also looking to increase the volume and the diversity of funding to finance all the future plans of the company.”
Given the performance of its subsidiaries in 2020, AIH is expected to record solid financial performance compared to historic figures.
UE Finance, an AIH subsidiary, will securitise its portfolio once that records EGP 1.5bn, which is expected to take place by the end of Q1 or the beginning of Q2 of 2021.
The subsidiary is targeting larger corporates and tickets with a target ticket size of EGP 100m, compared to the current small- and medium-sized enterprises (SMEs) portfolio, which has an average ticket size of EGP 45m.