Analysts expect an immediate IPO on the Egyptian stock market despite the rise in the stock price

CAIRO (Reuters) – Furi Electronic Banking and Payment Technology, Egypt's largest electronic payment company, are expected to be successful despite the $ 6.46 ($ 0.39) price hike, badysts said Monday at Reuters of the Egyptian stock market.

Furi, which currently belongs to five local, foreign and Arab funds, was established in 2009 and is also active in the banking technology sector and provides financial services to individuals and businesses. Management and employees account for approximately 8% of the company's shares.

"The market is thirsty for new products, so the offer will succeed, especially as the percentage of coverage is low, so the volume of coverage will be important," said Mona Mustafa, director of trading at Arabiya Online. "Hermes has considerable experience.

"The main goal of an immediate launch is to get out of a major investor and to get into another investor … an immediate offer will provide a market test for the expected government themes in September … despite the high price of the offer, but its long-term success could attract new businesses. "

On the Egyptian Stock Exchange, Furi will collect up to 1.6 billion pounds, of which about 21% will be offered to Actis, Bank Misr and the National Bank of Egypt, at 7% each.

The remaining 15% is divided into a public offering of small investors of around 5%, and financial institutions and large investors of around 10%.

The capital of the company is 353,652 billion Egyptian pounds distributed on 707,304 million shares with a par value of 0.50 LE per share.

The latest public offering from a private company to ESA was the launch of Tharwa Capital, a specialist in financing solutions, last October.

"Furi is a company offering a new industry that is not available in the market, but the price is high because it is based on high multiple exchange rates," said Radwa Al Suweifi, head of research at the bank investment Pharos. "The discount is not much higher than the fair value.

"We would have liked to give a higher discount on fair value, especially in difficult market conditions."

The independent financial advisor estimated the fair value of the immediate share at LE 6.90. EFG-Hermes acted as the lead of the IPO, promoting the process and maintaining coverage and coordination.

"The market is suffering from a lack of incentive or strength, so it is changing badly with a downward trend," said Ibrahim Al-Nimer of Naeem Securities Brokerage. The main index has crossed the support level of 13550 points and is targeting the bottom of the year at a support level of 13380 points.

The IPO began Friday and ends Wednesday, while the IPO of Egyptian individuals began Sunday and ends August 5.

Combined revenues for the first quarter of 2010 were 173.9 million pounds, up 36% from the previous year, while EBITDA was 42, 4 million pounds, up 52.7% over the previous year.

"The IPO will succeed because the sector company does not intervene directly in the market and that it acquires a market share of about 40% in the electronic payments sector. Egypt, "said Ahmed Adel, vice president of research for the telecommunications sector at Beltone Investment Bank.

"No one can judge the price of the stock because there is no reference to actions similar to those of the market."

Furi plans to start trading its shares on the Egyptian Stock Exchange on August 8, 2019, after receiving the approval of the stock exchange, the last trading day on the stock exchange, before a long leave on the occasion of the Eid al-Adha.