The National Printing Company makes its EGX debut today. Here’s why it thinks you should like its shares.

National Printing begins trading on the EGX today under the ticker NAPR.CA following a secondary sale that was 23.6x oversubscribed. The stock will debut at EGP 21.25 per share — a markdown from its fair value, which was set at EGP 28.27 a pop.

ICYMI- The company debuted a 10% stake in a transaction that raised c. EGP 449.9 mn. Half of the offering was allocated to a Saudi investor through a private placement, while the remainder was distributed among institutional and retail investors in Egypt.

The pitch: National Printing is plugged into the kind of demand that doesn’t go away when the economy slows. Its bread and butter is printing and packaging for FMCG, healthcare, and education — industries that people keep spending on, even in tougher times.

There’s also real export upside here. The company is already a regional supplier and a local import substitute. With 80% of its cost base in EGP, National Printing says its structure allows it to generate hard currency from exports (which account for 25% of sales) while mitigating FX risk.

Being fully integrated is another plus. National Printing makes much of its own raw material and handles the full production chain, which keeps costs predictable, quality consistent, and operations efficient — an exciting story for a capital-heavy business like this.

The origin story: National Printing, founded by the El Moallem family, who had roots in the printing business dating back to 1979, has grown into one of MENA’s largest integrated printing and packaging players. The company started with Shorouk Press, then set up paper manufacturer Windsor in 2003, and formally consolidated operations under National Printing in 2006 under Grandview Investment, run by Marianne Ghali and a unit of Qalaa Holding. The company then acquired El Baddar for Packaging and launched Uniboard in 2017, now a leading regional duplex board producer. Today, the group runs four core subsidiaries serving 690 blue-chip and multinational clients across 15 sectors.

Solid growth with strong margins: In 1Q, the company booked EGP 1.7 bn in revenue and EGP 394 mn in EBITDA, translating to a 22.8% margin. For 2024, the group reported EGP 7.1 bn in revenue and EGP 1.6 bn in EBITDA, with margins hovering around 23%, reflecting a cost-efficient business model.

Timing may not be ideal, but that’s okay: National Printing is expected to see strong performance on its debut today, backed by robust financial results and its established leadership in Egypt’s printing sector, Ehab Rashad, vice chairman of Mubasher Capital Holding, told us. While summer is typically a quiet season for IPOs, Rashad noted that the offering drew solid demand, supported by broadly positive market conditions. Seif eldin Awni, managing director of Elite Financial Consultancy, acknowledged the less-than-ideal timing but said the IPO is unlikely to face the same hurdles as Bonyan, citing the smaller offering size and improved market sentiment driven by better economic indicators and easing geopolitical tensions.

Post-IPO plans: The company aims to boost exports to make up over 50% of total output over the next five years, up from 30% currently, Chairman Ibrahim El Moallem told Asharq Business. CEO Sherif El Moallem added that the company is planning to invest USD 18-20 mn by the end of 2026 to expand its capacity, targeting a 10-20% increase from its current 236k-ton production capacity.

ADVISORS- Our friends at EFG Hermes Investment Banking quarterbacked the offering as sole global coordinator, while Zulficar and Partners served as legal counsel.

WHAT’S NEXT IN THE IPO MARKET?

Also in the 2025 IPO pipeline: The EGX’s IPO pipeline dried up as the 2023-2024 currency crisis took hold — and had been weak for some time before that. REIT-like real estate operator Bonyan broke the curse this summer with its closely watched listing. Investors are particularly excited about the prospect of a Hussein Abaza-led Banque du Caire privatizing a stake through an IPO — bonus if it includes a GDR listing — while there is chatter that military-owned bottled water maker Safi and filling station owner Wataniya could go public. Two government sources told us earlier this summer that BdC, Safi, and Wataniya are in the pipeline as the state looks to raise as much as USD 5-6 bn from a “fourth wave” of privatization.

A hodge-podge of private sector companies have also flagged interest in going public, but we have even less clarity on their timelines than we do on the big three. They include Al Ahly Sabbour, Enara, Tabarak Holding, and others.