Egypt launches a minority stake in E-Finance for the IPO

Egyptian state-controlled e-finance for digital payments and financial investments said on Sunday it will offer up to 14.5% of its capital in an initial public offering in the fourth quarter of 2021.

The company, founded in 2005, added in a statement that it is the only entity authorized to operate government financial networks, including the processing and settlement of payment, collection and settlement transactions.

The initial public offering of E-Finance is one of the many planned quest’year.

In May, Egypt sold a 51% stake in Arab Investment Bank to the Egyptian financial group Hermes in the first agreement to sell a majority stake in a bank since 2006.

The Egyptian government announced in 2018 its intention to sell minority stakes in more than 20 companies, but these operations have been repeatedly postponed due to declining market performance and the recent Corona virus pandemic.

E-Finance has stated that it will offer in stock market 177.8 million new shares, in addition to the 80 million shares already owned by existing shareholders, for institutional and private investors.

Among the parties that own shares in the company are three state-owned banks, namely, the national investment banks with a 63.64% stake, Al-Ahly and Egypt, each with a 9.09% stake, according to a annual financial report published by the company in 2019.

Also the Egyptian Banks Company, responsible for handling payments and led by the Central Bank, and the Egyptian Company for Investment Projects each have 9.09% of e-finance.

E-Finance said its revenues jumped to 1.23 billion Egyptian pounds (78 million dollars) in 2020 and 904 million Egyptian pounds in the first half of 2021, with a compound annual growth rate of 30% since 2018 to 2020.

The company statement added that the bidding process is subject to market conditions and regulatory approvals.

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