Qalaa makes good on its investor promises with IPO, funding, and asset-sale push: Qalaa Holdings is moving ahead with the growth and deleveraging strategy it outlined in its 1Q results, with the board approving plans to pursue five potential EGX listings, issue up to USD 200 mn in convertible bonds, and sell stakes in three subsidiaries, according to a bourse disclosure (pdf).

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Delivering on earlier guidance: In its earnings release two weeks ago, Qalaa said it was preparing four IPOs for its subsidiaries over the next two years to “unlock shareholder value and enhance financial flexibility,” and pursue price discovery for its shares in these subsidiaries. That pipeline has now expanded to five, underscoring the group’s accelerating execution.

Who’s lining up for the float: Subsidiaries under review include Dina Farms for FoodIndustries (advised by EFG Hermes), National River Ports Management (advised by Zilla Capital), ASEC for Automation, and two undisclosed companies.

Debt and capital optimization: The planned USD 200 mn convertible bond issue aims to reduce debt, cut financing costs, and channel fresh capital into Qalaa’s high-growth platforms. The company will also consider selling two wholly owned subsidiaries and a minority stake in another while retaining control.

SOUND SMART- A convertible bond is a hybrid instrument that allows investors to exchange debt for equity at a preset price. For issuers, it offers cheaper financing in exchange for potential future dilution; for investors, it provides bond-like downside protection with equity-style upside.

In context: Qalaa reported EGP 37.2 bn in revenue in 1Q 2025, broadly stable y-o-y, with strong growth across ASEC, ASCOM, Taqa Arabia, and CCTO offsetting weaker refining margins at its ERC arm. Excluding ERC, the group delivered a 24% jump in revenue, proof of the underlying strength in its non-refining portfolio. The company is targeting a debt reduction of around EGP 30 bn this year, supported by ERC’s accelerated repayments — the refinery remains on track to fully repay its senior debt by early 2026.

Market reax: Qalaa’s stock price shed 0.7% to close at EGP 2.71 yesterday.

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