Sarwa Capital, one of leading provider of consumer and structured finance solutions in Egypt, announced on Tuesday its intention to proceed with an initial public offering (IPO) on the Egyptian Exchange (EGX).
Company revealed that the offering will include a primary offering of newly issued shares, in addition to a secondary offering of existing shares held by the company’s current shareholders, constituting up to 40% of Sarwa Capital’s total shares.
Sarwa Capital hired Beltone Financial Holding as the sole global coordinator and bookrunner, while Matouk Bassiouny will serve as the legal adviser.
Moreover, the IPO will include an institutional offering to qualified investors internationally, along with a retail offering to retail investors in Egypt and both are expected to take place in late quarter three of the year (Q3) 2018 or early Q4 of 2018, subject to market conditions and the receipt of regulatory approvals.
The IPO will be a new phase in the company’s growth, and development, going public, after 17 years of building a strong institution, and will boost the company’s growth, said Sarwa Capital’s Chief Executive Officer Hazem Moussa.
“With a strong organisational structure instilled through a capable team and supported by a long history of hosting institutional shareholders including the Commercial International Bank (CIB), Banque Misr, Concord International Investments, Amwal Al Khaleej, and current shareholders the Egyptian American Enterprise Fund, we feel well prepared for this next milestone,” Moussa added.
The ownership structure of the company is divided between the Egyptian American Enterprise Fund (EAEF) as the largest shareholder with a 72% stake, and the management team, comprised of Hazem Mousa, Amr Lamy, and Hussam Abu Gendia, as well as other investors with a 28% stake.
Sarwa Capital has been active in a number of financial sectors, notably securitisation.
The company has conducted securitisation worth EGP 10bn since 2005. Sarwa has financed over EGP 15bn in assets, generating a five-year net profit CAGR of 52% from 2013 to 2017 along with some operations in consumer finance, leasing, mortgage, and insurance.