Expectations of a successful IPO on the Egyptian stock market

(Reuters) – The largest Egyptian electronic payment company is expected to be listed despite a price increase of $ 6.46 ($ 0.39), badysts in the Egyptian financial markets told Reuters.

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 be successful, especially as the percentage of coverage is low, so the volume of coverage will be important, especially since the offer, Hermes, has a great experience, "said Mona Mustafa, director of transactions at Arabiya Online. Immediate release of a major investor and entry of another investor (…): an immediate offer would be a test of the market for government themes expected in September (…) despite the high bid price, but its long-term success would have attracted new companies. "

It will raise 36% of its shares on the Egyptian stock market up to 1.6 billion pounds, of which about 21% will be offered to Actis, Bank Misr and National Bank of Egypt to 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.

"The company is proposing a new industry that is not present on the market, but the price is high because it is based on high multiple exchange rates," said Pharos Radwa Al Suweifi, head of research at the bank. 'investment. "The discount is not much higher than the fair value.On fair value especially in the difficult conditions faced by the market."

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 force, so it is changing badly with a downtrend, the main index broke the support level of 13,550 points and the bottom of the market. year is at the support level of 13380 points, "said Ibrahim Al Nimer of Naeem Securities Brokerage.

The IPO started on Friday and ends on Wednesday, while the IPO started on Sunday and ends on August 5th.

The consolidated sales figure for the first quarter of 2010 is set at £ 173.9 million, up 36% from the previous year, while EBITDA is up by 36% year-on-year. was £ 42.4 million, up 52.7% year-on-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 telecommunications research 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.