MO Group wants to IPO: Food and beverage producer MO Group for Food Industries is looking to list its shares on the EGX, with plans to switch to a joint-stock company by next March ahead of its planned IPO, Chairman Hamdy Al Abraq told Hapi Journal. The company will initially offer a 35% stake in an IPO, before increasing the stake listed to 60% within the next three years.

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What we know: The funds raised from the listing will help the company fund its expansion plans and improve financial transparency, Al Abraq said. He didn’t mention the number of shares the company plans on listing or the amount to be raised from the listing.

The company plans to invest USD 10 mn to set up new production lines, particularly for biscuit and chocolate products, Al Abraq added, explaining that the company plans to double its monthly production capacity to 6k tons in 2025, half of which will be earmarked for exports.

Big export target for next year: MO Group wants to increase its exports to USD 20 mn for 2025 through penetrating new markets in Latin America, North America and Europe, as well as expanding its reach in African and Gulf countries.

IPOs are a bit of a rarity on the EGX nowadays, but investor appetite seems to be strong, with the only two IPOs to happen this year being heavily oversubscribed. United Bank’s retail offering, which closed earlier this month, was oversubscribed 59x, while the offering’s private placement was covered 6x — raising some EGP 4.57 bn. While earlier in the year, Act Financial’s retail tranche for its EGP 1 bn IPO was 54.8x covered and its institutional tranche was 20.2x oversubscribed — the highest demand a subscription period has seen in six years.

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