E-Finance for digital & financial investments announced that it intends to offer up to ~ 14.5% of its shares on the EGX in Q4-2021, in what would be the second IPO of the year after Taaleem Management Services (TALM). The company said that the offering will consist of an offering in the primary market of the stock exchange for 177.8 million shares, in addition to an offering in the secondary market of 80 million shares.
Who is affected🤷: Recent years have witnessed a structural shift in global market dynamics towards electronic payments, facilitated by a massive expansion in the volume of online commerce. The MENA region has been subject to this transformation in the way business is done. The company’s recent strong growth looks set to attract investors. e-finance reported a net profit of EGP 352 million in 2020, up 30% compared to EGP 271 million in 2019, according to the unaudited data provided in the press release. The company’s revenues recorded a growth of 25% to reach 1.2 billion pounds last year, compared to 984 million pounds in 2019. The company is expected to record greater growth during this year, as it achieved a net profit of 276 million pounds, and revenues amounted to 904 million pounds in the first half.
Why is this important🤔: The offering will be closely monitored by other companies considering offering their shares. Most notably Ebtikar Holding & Macro Group Pharma, whose IPO plans were affected by pandemic conditions & its effects on the EGX. Ebtikar had hired EFG Hermes in September of 2020 to explore listing options, while Macro Group was so close to listing earlier this year only to end up postponing its IPO. The performance of e-finance’s IPO will very much influence the decisions of companies like Ebtikar, Macro, & others to consider listing on the EGX soon.
