Beltone Financial Holding, one of the fastest-growing investment banks in Egypt, announced on Wednesday that it has successfully closed the largest capital increase in the history of the Egyptian Stock Exchange (EGX). The EGP 10bn Rights Issue of 5 billion new ordinary shares was oversubscribed by 5.49 times, with strong support from both existing shareholders and new investors.
Dalia Khorshid, Group CEO of Beltone Financial, said: “We are pleased with the outcome of our Rights Issue and the support we have received from our shareholders and new investors. The oversubscription of the second round of the Rights Issue is a testament to the confidence that investors have in our transformation plan and our commitment to value-driven growth.”
Khorshid added: “The successful completion of the Rights Issue is a key milestone in our growth strategy. We have restructured the organization, assembled a world-class team of leaders across the businesses, and invested in our digital future. We look forward to building on this foundation as we grow at home and across global markets.”
The Board of Directors of Beltone Financial has authorized management to finalize regulatory procedures to list the new shares on the EGX. Post listing, Beltone’s issued and paid-in capital will increase from EGP 926m to EGP 10.9bn.
The capital increase will be used to support Beltone Financial’s growth strategy, which includes expanding its investment banking, asset management, and brokerage businesses. The company also plans to invest in new digital products and services.
In October 2022, a total of about 259.121 million shares in Beltone Financial were subscribed to Abu Dhabi-based Chimera Investment’s mandatory tender offer (MTO), making up to 55.9% of the Egyptian company’s shares, which is the stake owned by Orascom Financial Holding, with a value of about EGP 385m.