Zilla Capital set to launch ACT Financial offering for EGP 700m in May

Fatma Salah
3 Min Read

Zilla Capital, serving as the financial advisor for ACT Financial’s offering, has prepared a promotional memorandum ahead of the anticipated share offering on the Egyptian Exchange (EGX). The memorandum details a projected offering size of approximately EGP 700m, with EGP 500m reserved for a private offering and EGP 200m set aside for a public offering slated for next May.

While the memorandum omits the exact percentage of shares to be offered, reliable sources have informed Daily News Egypt that it will constitute a 25% stake in the company through a capital increase.

Zilla’s report further indicates that ACT Financial’s combined investment portfolio, along with its affiliates, is poised to hit EGP 4bn by year-end 2023. Concurrently, the company’s standalone investment portfolio is projected to reach around EGP 1bn.

The report boasts an impressive investment return rate exceeding 42% over the past four years. The ownership structure of the company is divided, with 37% held by the management team and 63% by a consortium of business magnates across diverse industries.

ACT Financial’s publicly disclosed investment portfolio comprises significant holdings in Beltone Financial—acquired in partnership with Orascom Financial Holding from 2015 to 2019—and stakes in Heliopolis and SODIC from 2020 to 2021. The company also maintained a share in Ezz Steel from 2021 to the present.

Additionally, the company held interests in CI Capital Holding from 2019 to 2020 and in the 10th of Ramadan Company, Rameda, surpassing 5% between 2020 and 2023, with a partial divestment from Ezz Steel.

The report alludes to several undisclosed investments, representing shares below the 5% threshold in the respective companies.

ACT Financial strategically targets promising ventures within the Egyptian market, striving to augment the value of its investments and secure robust returns. It is adept in a spectrum of equity investments and plays a strategic role in acquisition activities.

The company’s investment selection is guided by three core principles: intrinsic value, strategic vision, and a multiplicity of exit strategies. ACT Financial transcends the conventional investment management role, positioning itself as a pivotal partner in its investment endeavours.

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