Investors had a strong appetite for the first round of Beltone Holding’s blockbuster EGP10.75bncapital increase, according to a disclosure to the EGX (pdf). The rights issue of c. 5.4 bn shares was 92.11% covered by investors during the first phase of subscription, which ended on Monday. The total increase will see Beltone’s capital rise to EGP 21.7 bn, marking one of the largest ever capital increases on the EGX.

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Information about the next subscription round will soon be made public once the financial services firm gets the thumbs up from the Financial Regulatory Authority, the statement reads.

The capital increase will support Beltone’s growth strategy to strengthen its market position, leveraging data science to expand its financial services and expand its product offerings. CEO Dalia Khorshid described the move as “a significant step in accelerating our data-driven strategy and sustainable growth” in a statement (pdf) announcing the increase in December. “By further leveraging technology and artificial intelligence, along with investing in human capital, we are committed to achieving a transformational impact in the financial services sector creating long-term value for our shareholders,” she added.

This is Beltone’s second big capital increase: Global and regional investors flocked to the firm’s EGP 10 bncapital increase in 2023. This came shortly after Abu Dhabi-based investment company Chimera Investments acquired 56% of the company in 2022 and recruited an all-new team of senior executives, led by Khorshid as CEO.

Beltone is starting the year on a strong footing, having recorded EGP 1.7 bn in net incomeduring 2024, a 4.6x y-o-y rise, with a solid performance across both its non-bank financial institutions and investment banking platforms. Consolidated revenues were up 4x y-o-y for the year at EGP 7.2 bn.

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