Newly promoted Future Care earmarks its capital raise for an EGP 100 mn export factory

Newly main market-promoted Future Care for Medical Industries will build a medical-sterilization products factory for up to EGP 100 mn to lift capacity and expand into export sales to the Gulf and Africa, the company told the EGX in a filing (pdf). Half the cost will come from the capital increase it carried out to reach the main board; the rest from financing sources it hasn’t yet named.

The raise was earmarked for this all along. Future Care flagged the factory in a feasibility study and forward plan it filed as part of its promotion, the company said. That means the capital increase that got it onto the main board was never only about clearing the threshold. The increase came to EGP 57.5 mn (to EGP 115.2 mn, from EGP 57.7 mn), and the company says up to half the factory’s bill — as much as EGP 50 mn — will lean on it. Most of the fresh capital, in other words, is already spoken for.

REMEMBER- Future Care — formerly International Company for Medical Industries — began trading on the main board last week, graduating from the SME market after 14 years. The move required nearly doubling its capital to EGP 115.2 mn from EGP 57.7 mn to clear the EGP 100 mn minimum for a main-market listing, opening the stock to index and institutional mandates that don’t reach the SME board. It was the year’s second SME-to-main transfer, after non-bank lender Tawasoa for Factoring made the move in June.

What’s still open: Only phase one draws on the capital increase; anything beyond that goes back to the board and general assembly to weigh other financing, the company said. It named no site, no timeline, and no source for the other half of the bill.

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