Egypt Education Platform lines up 25% EGX float

Egypt Education Platform (EEP) is engineering its capital structure before it floats up to 25% of its shares on the EGX, Al Mal reports, citing sources familiar with the matter. The company’s extraordinary general assembly (pdf) greenlit a 10-for-1 stock split, slashing the nominal share value from EGP 10 to EGP 1. EEP is pairing the split with an EGP 611.9 mn capital hike funded entirely through retained earnings, taking issued capital to EGP 2.6 bn.

BUT- We are still awaiting clarity regarding valuation, exact timing, and whether the offering will be a primary capital raise to fund expansion or a secondary sell-down.

The EGX waiting room: The financial maneuvering comes just weeks after the education giant temporarily listed 199.4 mn shares on the EGX main market — the sixth company in the EGX’s education services sector. The capital increase leaves EFGEMS Education — EEP’s founding JV between EFG Hermes and GEMS Education — firmly in control, with its stake slipping only marginally to 98.4% from 99.99%. The move gives EEP a cleaner capital structure ahead of its float in the defensive, high-multiple education sector.

MEANWHILE- Beyond hunting for local retail liquidity on the EGX, the company is reportedly also working on a USD 100 mn+ Gulf-focused fundraising round.

A broader education empire: The EFG Hermes-backed vehicle, which counts the Sovereign Fund of Egypt among its anchor investors, has built a portfolio spanning K-12 schools and preschools, an education content platform called Selah El Telmeez, and other related services. EEP recently made its first push into higher education, signing an agreement with TMG earlier this year to build an EGP 8 bn private university in Noor City.