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Sarwa Capital records EGP 27.5bn in public and private offerings 2 US institutions enter market for first time, return of Arab, foreign institutions following 2011 revolution
The public offering of Sarwa Capital was oversubscribed around 30.1 times, recording a strong demand of EGP 6.5bn, equivalent to 887,409,725 shares, compared with 29,517,073 shares offered. Brokerage CEO at Beltone Financial, Mostafa Abdel Aziz, said that most of the public and private placement demand came from outside the Egyptian capital market, noting that 80 to 90% of demand in the private offering was fresh money, not originated from the stock exchange. Abdel Aziz said that the offering witnessed the entry of two American institutions for the first time in the Egyptian market, as well as the return of a large number of Arab and foreign institutions to the market, after their halt of investments in the Egyptian market, following the 2011 revolution. The company previously announced that the final price of its public offering was set at EGP 7.36 per share, after the success of the book-building process for the institutional offering of 265.65m ordinary shares. Public offerings require the deposit of 25% of the value of the purchase order in cash under the subscription account, which indicate that around EGP 1.625bn are subscribed to the offering, about EGP 1.4bn more than the value of the shares offered, worth EGP 217.2m. The private offering was only 3.3%, while private offering closed at 10.83 times on Monday. This means that Sarwa Capital has received EGP 27.5bn worth of subscriptions through its public, and private sectors. Beltone Investment Banking is acting as sole global coordinator and bookrunner, with Matouk Bassiouny acting as counsel to the issuer. In August, Sarwa Capital announced its intention to issue IPO on the EGX. Sarwa Capital is a provider of consumer and structured finance solutions in Egypt.
