e-finance, Egypt’s state-run digital payments infrastructure and fintech platform, announced on Sunday that it plans to list up to 14.5 percent of its shares on the Egyptian Exchange (EGX) in the fourth quarter of 2021.
Investors will be able to purchase over 258 million shares, with 177.8 million in a primary offering and 80 million in a secondary offering.
Here Is What You Need To Know
- According to the company’s statement, the offering will comprise a private placement to specific institutional investors in Egypt and globally, as well as a retail offering in Egypt. The company did not specify how many shares would be allotted to institutional investors.
- Simultaneously, e-finance is seeking the necessary approvals and registrations for the offering, notably from the Financial Regulatory Authority (FRA) and EGX.
- The company’s strong recent growth rates are set to attract investors. Its revenues grew to EGP 1.2bn in 2020, good for a 2018–2020 CAGR of 30 percent , and recorded EGP 904m in the first half (H1) of 2021.
- EBITDA expanded at a 2018–20 CAGR of 35 percent to EGP 465m in 2020 and recorded EGP 379m in H1 2021, The company’s net profit grew at a 2018–20 CAGR of 41 percent to EGP 352m in 2020 and EGP 276m in H1 2021.
- Revenues and net profit grew between H1 2018 to H1 2021 at a CAGR of 37 percent and 68 percent , respectively. NPM has expanded from 16.8 percent in H1 2018 to 30.5 percent in H1 2021.
A Look At What e-finance Does
E-finance offers a wide range of digital services through subsidiaries, in addition to processing EGP 2.1 trillion in government transactions. These subsidiaries include:
- e-cards, Egypt’s largest payment card manufacturer, which provides integrated smart solutions for banking, transportation, culture, education, clubs, and smart city services.
- Khales, through a network of more than 326k POS machines and digital channels such as a mobile app and a digital bill payments portal, serves as a central bill processing hub for 13 partners.
- e-aswaaq, a digital purchasing platform with over 300,000 merchants specializing in agriculture, commerce, industry, and tourism;
- e-nable, a business process outsourcing (BPO) arm, provides HR and IT outsourcing as well as full contact center services.
E-finance Egyptian Exchange E-finance Egyptian Exchange
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
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