Egypt’s state-owned e-finance announces final share price ahead of Monday public offering

Doaa A.Moneim , Thursday 14 Oct 2021

Egypt's state-owned company e-finance For Digital and Financial Investments announced a final price of EGP 13.98 for each share that will go public on Monday under the government’s initial public offering (IPO).

Egyptian Bourse

Public subscription on the shares kicked off on 10 October and is scheduled to close on 17 October.

On Monday, e-finance announced that it has increased the shares that it intends to list on the Egyptian Stock Exchange (EGX) by 26.1 percent of the group’s total. This brings the number to 417.7 million, up from 257.7 million, to meet the high demand during the subscription submission process.

e-finance is the second state-owned company to list its shares under Egypt’s IPO programme after the successful offering of the Eastern Company for Tobacco in 2019.

The IPO programme was postponed due to the pandemic.

Moreover, it’s the second Egyptian fintech company to be listed in the EGX following Fawry for Banking Technology and Electronic Payment, which go public in August 2019.

Up and coming

The company is Egypt’s first fintech platform and one of its leading developers for digital payment infrastructures.

e-finance's offering includes a primary issue and sale of up to 177,777,778 ordinary shares on the EGX in addition to a secondary sale by existing shareholders of up to 80 million existing ordinary shares on the EGX.

The company’s revenues grew by a compound annual growth rate of 30 percent between 2018 and 2020 to record EGP 1.2 million for 2020 and EGP 904 million for the first half of 2021.

e-finance operates the government’s financial network through its primary subsidiary e-finance for Digital Operations. It is also a leader in digital payments, with the largest ecosystem of bill aggregators in Egypt.

Meanwhile, e-finance’s Khales platform operates a central bill processing hub for 13 partners through a network of more than 326,000 point-of-sale machines.

Thealso operates digital channels, including a mobile app and an online bill payment portal.

e-finance is the owner and operator of e-Aswaaq — the group’s latest venture in the e-commerce space — a digital purchasing platform with over 300,000 merchants specialising in agriculture, commerce, industry, and tourism.

The group also owns a business process outsourcing (BPO) company called e-nable, which provides solutions from human resources and information technology outsourcing to full contact centre services, fielding more than 1.5 million calls per month.

The group’s earnings before interest, taxes, depreciation, and amortisation grew by 35 percent to EGP 465 million.

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