Egypt’s fintech provider Fawry to list its shares in US stock market

Doaa A.Moneim , Thursday 20 Jan 2022

Fawry for Banking and Payment Technology Services S.A.E. announced on Thursday that it plans to list a portion of its shares in the US stock market in a filling submitted to the Egyptian Exchange (EGX).


It also disclosed its plan to increase its capital with a total of EGP 800 million through issuing rights to the company’s current shareholders.

These plans come to enhance the company’s position as a listed company in the local market as well as financing a fresh stage of expansion in the financial services the company introduces to its clients.

Moreover, it will continue to invest in strengthening its position in merchant acquiring as well as supply chain solutions.

As per the filing's conditions, a part of the proceeds will be dedicated to implementing Fawry’s investment strategy, accelerating innovation and supporting the budding ecosystem of high growth start-ups and fintech that back the company’s offering through e-commerce, logistics, fintech services, insuretech, among other online avenues.

For its listing in the US stock market, Fawry said that the procedure would be taken in light of the global market conditions after getting the required shareholder and regulatory approvals.

Fawry is the first Egyptian fintech company, representing the private sector, to list its shares in the EGX.

In August 2019, Fawry initiated its initial offering programme (IPO) in the EGX through offering 36 percent of its shares on EGX. Trading on its shares was oversubscribed by 30.3 times at LE 6.46 per share.

Established in 2019, Fawry is owned by five local, foreign, and Arab funds and specialises in banking technology as well as extending financial services to individuals and companies alike.

In 2020, Fawry became the first billion-dollar tech company in market capital in Egypt.

Six months later, the company managed to exceed $2 billion (EGP 32 billion) in market capital for the first time, making it the fourth most valuable company listed on the EGX.

In October 2021, Fawry broke an investment deal in Sudan with e-marketing platform. This investment is Fawry’s first international outing.

In January, Egypt’s House of Representatives approved a law that regulates and promotes the use of fintech in non-banking financial activities.

The law aims to expand electronic non-banking financial activities in the local market with the objective of reducing the costs of services provided through these activities as well as promoting the role of Egypt’s Financial Regulatory Authority in making sure that non-banking financial activities follow transparency and rational governance.

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