E-finance Investment Group admits its shares to Egyptian Stock Exchange

EGYPTE-finance Investment Group, an electronic payment solutions provider, has admitted its shares to the Egyptian Stock Exchange on October 20 at an initial price of 13.98 Egyptian pounds (US$0.89) per share, after raising 5.84 billion Egyptian pounds (US$372 million) during its recent IPO on the Egyptian Stock Exchange.

When the stock market closed, E-finance’s share price was 21 Egyptian pounds, up 50.2 percent for a company that is still in its infancy on the stock market, with a market capitalization of 22 billion Egyptian pounds (about US$1.4 billion).

With 5.84 billion Egyptian pounds (US$371.93m) raised during its initial public offering, the fintech has raised the most money on the Egyptian Exchange since 2005, when Egypt Telecom raised 5.1 billion Egyptian pounds (US$324.80m) in the stock market. In a public and private offering, E-finance sold a total of 417.77 million shares, or 26.10 percent of its capital.

“E-finance has been listed on the Egyptian Stock Exchange, marking a new chapter in the company’s history,” Ibrahim Sarhan, the company’s president, said.

“The robust demand for its shares demonstrates local and international investors’ faith in the company’s operational model and future growth. It is prepared to take advantage of our market’s increased need for digital services.”

The strong oversubscription of the offer reflects the strong interest of foreign and domestic investors in the company’s securities.

It should be noted that E-finance said in September that it planned to sell 14.5 percent of its capital in a maiden public offering for its IPO, which is set to take place in the fourth quarter of 2021.

The Egyptian government owns the fintech company, which was created in 2005. The company offers a wide range of digital services through subsidiaries, in addition to processing EGP 2.1 trillion (US$133.74bn) in government transactions.

The subsidiaries include e-cards, Egypt’s largest payment card manufacturer, that 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.

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