Egyptian digital payments company Fawry IPO oversubscribed 30 times

CAIRO (Reuters) - The initial public offering for Egyptian digital payments company Fawry was oversubscribed by 30.3 times at a price of 6.46 Egyptian pounds (39 U.S. cents), data from the Egyptian stock exchange showed on Monday.

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

Fawry plans to list 36% of its share capital, worth up to 1.6 billion Egyptian pounds ($97 million), in the flotation.

It said Actis, Banque Misr and National Bank of Egypt would each be offered about 7% of the stock, and 5% would be offered to retail investors.

A private placing representing the remaining 10% of the share capital was 15.9 times oversubscribed, raising about 360 million Egyptian pounds, investment bank EFG Hermes said last Thursday.

“The subscriptions for both the public and private offerings for Fawry were large and strong because the industry itself is new to the market and has greater than average growth,” said Radwa El-Swaify, head of research at Pharos Securities Brokerage.

“The view of investors this time around is toward the long-term payoff and not the short-term,” El-Swaify said. Fawry expects trading in its shares to start on the bourse on Aug. 8 after receiving approval from the exchange.

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 a 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 2018.

Reporting by Ehab Farouk; Writing by Nafisa Eltahir; Editing by David Holmes