Egypt's Fawry raises $22 million in private placing ahead of IPO

FILE PHOTO: The headquarters of Fawry Company "Online Payment Portal" are pictured in Cairo, Egypt February 15, 2018. REUTERS/Ehab Farouk

CAIRO (Reuters) - Egyptian digital payments company Fawry has raised about 360 million Egyptian pounds ($22 million) in a heavily over-subscribed private share placing ahead of its initial public offering (IPO) on the local stock exchange, the listing manager said on Thursday.

Investment bank EFG Hermes said bids were entered for 15.9 times the number of shares on offer in the placing, which was priced at 6.46 Egyptian pounds per share.

The placing represents about 10% of Fawry’s share capital and was targetted at financial institutions and major investors.

In total, the company plans to list 36% of its share capital. Actis, Banque Misr and National Bank of Egypt will each be offered about 7%, EFG Hermes said in a statement. The remaining 5% will be offered to retail investors.

Fawry, founded in 2009, is owned by local and foreign investment banks. About 8% of its shares are held by management and employees.

Fawry’s network processed 600.1 million transactions last year with a total value of 34.2 billion Egyptian pounds, EFG Hermes said in its statement.

The company made core profit of 152 million pounds in 2018, up 41.2% on the previous year.

The last IPO by a private company on the Egyptian stock exchange was that of consumer finance business Sarwa Capital in October.

Fawry expects trading in its shares to start on the bourse on Aug. 8, 2019, after receiving approval from the exchange.

Reporting by Ehab Farouk; Writing by Nadine Awadalla and Nafisa Eltahir, Editing by Alexandra Hudson and Mark Potter