Egypt’s first SPAC announces capital increase following maiden M&As: Catalyst Partners’s SPAC Catalyst Partners Middle East (CPME) raised its capital more than 10x to over EGP 3 bn, up from EGP 235 mn, marking one the largest restructurings the local market has seen this year, according to a press release (pdf).

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REMEMBER- CPME became Egypt’s first SPAC after securing FRA approval in September of last year before listing on the EGX two months later.

A swap for scale: The EGP 2.8 bn hike, which secured board approval earlier this week, was executed via share swap to complete CPME’s first-ever acquisitions: Qardy for Digital Applications and Catalyst Partners Holding.

The pitch: CPME called the capital hike a milestone that strengthens its regional position, opens space for new investments, and sets the stage for its EGX trading debut while widening its investor base.

Transaction mechanism: The SPAC issued 278.4 mn new shares at a par value of EGP 10 each, all of which were allocated to the shareholders of Qardy and Catalyst Partners Holding, according to an EGX disclosure (pdf). This raised CPME’s issued and paid-up capital to EGP 3 bn across 302 mn shares.

What’s next? The SPAC is currently gearing up for its trading debut with plans to raise EGP 1 bn. Chairman Maged Shawky previously told EnterpriseAM the vehicle was eyeing six to ten acquisitions, including fintech and NBFS firms, as part of its long-term plan to broaden its portfolio. Shawky also said CPME intends to expand into regional markets, either directly or via acquisitions of companies with existing operations abroad.

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