Swvl secures USD 4.7 mn through share sale: Dubai-based mass transit app Swvl sold USD 4.7 mn in ordinary shares to investors, including some of its board members, in a private placement, to support its expansion to the US next year, according to a press release. The shares were priced at USD 4.79 each, based on its 15 November closing price. The transaction was expected to close on or about November 18, 2024, pending standard conditions.

Buyers have agreed to a six-month lock-up period and restricted transfers afterward, limiting sales to 20% of their holdings every 90 days.

This is not Swvl’s first private placement: It agreed to sell USD 20 mn-worth of new shares in 2022 to an undisclosed institutional investor.

The startup recently snagged new contracts: In the past three months, Swvl secured USD 4.2 mn in contracts across Egypt's mobility sector, partnering with companies in FMCG, telecom, e-commerce, and banking, according to a separate press release.

Market reax: Swvl’s shares rose 32% to USD 6.32 on Monday following the announcements, but were down 17.2% to USD 5.52 yesterday. The Egypt-born startup’s shares are up 245% YTD.

REFRESHER- Swvl posted a net income of USD 3.1 mn in 2023, a sharp turnaround from its USD 123.6 mn loss in 2022. CEO Mostafa Kandil attributed the recovery to cost-cutting, exiting non-core markets, and focusing on Mena operations.

Tags: