Introducing, VALU.CA. Valu became the latest addition to the EGX yesterday after U Consumer Finance — which owns and operates the Valu brand — rang the opening bell to kick off trading. Shares in the company increased 852.4% from its opening price of EGP 0.78 to end the day at EGP 7.40 — maxing out the price ceiling given to the homegrown fintech for its first day of trading.

Going public handed EFG shareholders roughly 20.5% of the company’s share capital, with its parent company EFG Holding — via its EFG Finance arm — retaining a 67% stake, according to a statement (pdf) from Valu and parent company EFG Holding.

And it also welcomed Amazon as one of its largest shareholders, with the US multinational giant acquiring a nearly 4.0% stake in the company for EGP 6.04 a share by exercising a three-year-old option play. The move handed the world’s second largest company by revenue and fifth biggest by market cap a strategic entry into one of the region’s fastest-growing BNPL and consumer lending platforms.

REMEMBER- Amazon had purchasedUSD 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.

The long-awaited debut is a bellwether for Egypt’s capital markets, showcasing a new pathto public ownership outside traditional IPOs. Unlike an IPO, the financial services giant gave its shareholders stock in U at a rate of one share per 3.3 EFG Holding shares held as a dividend in lieu of a traditional payout, funded by EGP 335.5 mn from EFG Holding’s distributable retained earnings.

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.

Valu also became the first consumer finance company to be traded on the EGX, which will open “the door to expanding the base of listed companies” in the non-banking financial services sector, said Financial Regulatory Authority Chairman Mohamed Farid. The unconventional listing also “confirms the EGX’s trading systems’ readiness to accommodate listings and implement new, unconventional ideas,” according to EGX Executive Chairman Ahmed El Sheikh.

What they said: “Valu’s listing on the Egyptian Exchange is a proud and defining milestone for EFG Holding. It reflects the culmination of years of strategic investment, innovation, and unwavering belief in the power of financial technology to transform lives,” EFG Holding Group CEO Karim Awad said.

ADVISORS- Valu and EFG Holding tapped EFG Hermes Promoting and Underwriting as their sole financial advisor, while Zulficar and Partners acted as counsel. EFG Holding also appointed Gibson, Dunn, and Crutcher to provide counsel for international aspects of the transaction.

** We sat down with Valu CEO Walid Hassouna for a two-part interview ahead of ringing the bell to find out how the homegrown fintech has risen to become a household name, how it continues to outpace its rivals, and what the company still has in store ahead. You can check out part one of our interview here and part two here.

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