The EGX will soon be one company stronger, with U Consumer Finance — which owns and operates the Valu brand — set to begin trading on the EGX within just a few hours. The local fintech giant will begin trading under the ticker VALU.CA at a reference price of EGP 0.777.

But remember, this isn’t an IPO. EFG Holding is taking U Consumer Finance public by giving its shareholders stock in U equivalent to about 20.5% of the company. The financial services giant gave its shareholders stock in U as a dividend in lieu of a traditional payout. The “move unlocks value for EFG Holding shareholders by crystallizing the true market worth of a key asset,” EFG Holding Group CEO Karim Awad told us when the transaction was first announced in March.

When Valu starts trading today, shareholders can either cash out by selling their shares on the open market or hold onto the dividend in equity form. In its first session, the share price will be allowed to move between a floor of EGP 0.10 and a ceiling of EGP 7.40, with no temporary trading halt mechanisms in place.

In total, EFG Holding shareholders are in line for EGP 3.2 bn. U is valued at EGP 15.6 bn, according to a report by independent financial advisor BDO Keys Financial Consulting. EFG Holding is distributing U shares representing about 20.5% of the company, valuing the transaction at roughly EGP 3.2 bn.

The ringing of the bell will also welcome Valu’s newest shareholder — US multinational giant Amazon. The world’s second largest company revenue and fifth biggest by market cap will soon be able to boast a 3.95% stake for EGP 6.04 per share, exercising a three-year-old option play, according to a statement (pdf) from Valu. The transaction will be executed during Valu’s first trading session today through the block trade after getting the necessary approvals.

REMEMBER- Amazon had purchased USD 10 mn worth of EFG Hermes’ London-listed GDRs back in 2022. The agreement included an option to convert them into a c.4.3% stake in Valu based on a market cap of USD 235 mn in the event of a third-party investment, IPO, or other liquidity event. With Valu’s listing now imminent, Amazon opted to convert, landing a seat at the fintech giant’s table.

The move hands Amazon a small but strategic entry into one of the region’s fastest-growing BNPL and consumer lending platforms, as Egypt’s fintech scene gears up for a rare entrance to the EGX with foreign interest. Valu’s listing is one of the most closely watched EGX listings in recent years, offering a stress test for investor appetite amid macro headwinds.

What they said: “Amazon’s decision to acquire a direct stake in Valu [is] a testament to EFG Holding’s proven ability to build greenfield ventures that evolve into pioneering market leaders,” said Awad. Valu CEO Walid Hassouna called it a “powerful testament” to the resilience and adaptability of Valu’s business model, one that he says continues to evolve to meet the needs of clients and partners.

ADVISORS- EFG Hermes is quarterbacking the transaction as EFG Holding and Valu’s sole financial advisor.

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