Act Financial has a busy few months ahead: With an IPO slated to wrap by end of this month, Managing Partner Mostafa Abdel Aziz let Enterprise in on the company’s post-IPO plans during the company’s subscription offering ceremony on Tuesday.

Refresher: The company is offering some 32% of its shares in what will be the first IPO the EGX sees in a year. The subscription period for retail investors is set to take place between 9-23 July, while institutional investors will get a chance to subscribe between 9-18 July. Existing shareholders won’t exit any of their existing shares for the IPO, with Act deciding to instead raise the company’s capital by issuing 360 mn new shares. The new shares will be divided into 300 mn shares for institutional investors and 60 mn for retail investors. The company aims to raise around EGP 1.04 bn through the offering.

POST-IPO-

Act Financial eyes stakes in three EGX-listed companies: Act Financial plans use the EGP 1 bn raised from its IPO to invest into three EGX-listed companies this year, Abdel Aziz told Enterprise.

Non-listed companies are also getting some love from Act: The company is also exploring potential investments in six non-listed local companies with the hopes of eventually listing them on the EGX, Abdel Aziz said, adding the company has met with over 100 non-listed companies so far.

These could be some pretty big-ticket investments: Abdel Aziz explained that the investments will range from 5-30%, depending on the size of the company and Act Financial’s plan for it.

THE IPO-

Over EGP 3 bn post-IPO market value: The capital increase for the offering will put the company’s market value at some EGP 3.4 bn from EGP 2.2 bn, Abdel Aziz said during the conference.

To help reel investors in: The company will step in and buy back 10% of its shares if shares drop below the offer price of 2.90 EGP, he said.

Off to a good start: Zilla Capital — IPO manager — Moustafa El Shenety said that the offering has already received a lot of interest from investors. El Shenety believes that Egypt could soon see the return of IPO activity thanks to exchange rate stability and the political climate.

2023 was a dry year for the IPO market: Last year saw only a single company make its EGX debut, Taqa Arabia started trading on the EGX in July 2023 — in a technical listing, not an IPO — listing 1.35 bn shares on the exchange. No company has made its EGX debut since.

MORE FUNDS IN THE PIPELINE-

Act is looking to secure more financing: Act Financial is currently in negotiations to secure EGP 2 bn in loans, Abdel Aziz told Enterprise, without naming the other parties involved.

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