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The retail tranche of Act Financial’s IPO was 54.8x covered, with investors subscribing to 3.3 bn shares — worth some EGP 9.5 bn — by the end of their subscription period yesterday, according to a statement (pdf) from IPO manager Zilla Capital. The IPO is the first the Egyptian market has seen since 2022, the statement read.
The details: Retail investors were offered 60 mn shares of the 360 mn shares the investment management firm was offering. Some 26k subscribers participated in the retail tranche of the offering.
ICYMI- The subscription period for institutional investors wrapped up last Thursday, and saw the offering 20.2x oversubscribed, the “highest oversubscription for private offerings on the EGX throughout the last 15 years.” Some 493 subscribers put in offers for 6.1 bn shares, worth some EGP 17.6 bn.
Who subscribed? “A multitude of local and regional investors, including high net wealth individuals, financial institutions and strategic investors” subscribed to the offering, according to the statement.
Refresher: Act Financial is offering some 32% of the company — 360 mn shares — in the first IPO the EGX has seen in a year. The shares are being offered at a price of EGP 2.90 a pop, with the company aiming to raise around EGP 1.04 bn through the offering. Managing Partner Mostafa Abdel Aziz told Enterprise earlier this month that EGP 1 bn of the offering’s proceeds will be invested into three EGX-listed companies this year.
Target reached: The company raised EGP 1.04 bn from its IPO, according to the statement.
What’s next? It remains unclear when exactly Act Financial’s shares will hit the EGX, but it will likely make its debut sometime next week.
It’s been pretty dry for the IPO market: Last year saw only a single company make its EGX debut, with Taqa Arabia listing 1.35 bn shares on the exchange in a technical listing rather than an IPO. No company has made its EGX debut since.
Advisors: Zilla Capital managed the IPO, Matouk Bassiouny & Hennawy was the company’s legal advisor, Baker Tilly provided auditing services, and Financial Advice Corporate Transactions was the independent financial advisor to the transaction. Mubasher Trade was placement agent.
