On Sunday, November 24, 2024, Catalyst Partners Middle East (CPME) held a press conference as part of the "Ring-the-Bell" event organized by The Egyptian Exchange (EGX), celebrating the launch of the company as Egypt's first Special Purpose Acquisition Company (SPAC).
The event was attended by Ahmed El-Sheikh, Chairman of The Egyptian Exchange, Heba El-Serafi, Vice Chairman of The Egyptian Exchange, Maged Shawky, Chairman of Catalyst Partners Middle East (CPME), Tarek Effat, Managing Director of the company, as well as members of the top management teams from both EGX and Catalyst Partners Middle East (CPME).
Ahmed El-Sheikh, Chairman of EGX, stated that the launch of Catalyst Partners Middle East (CPME) as Egypt's first SPAC is a positive step for the Egyptian capital market, in line with the rules established by the Financial Regulatory Authority (FRA) and in adhering to the high standards of governance and transparency.
El-Sheikh added: "The primary role of EGX is to serve as a platform for finance and investment. As a financing platform, EGX enables listed companies to secure the necessary funding for growth and expansion by facilitating access to funds from various sources; whether through capital increases or the issuance of bonds. Recently, EGX has seen several companies listed on both the main market and the small and medium enterprises market, reflecting the vital role EGX plays in supporting companies’ growth and expansion."
Maged Shawky, Chairman of Catalyst Partners Middle East (CPME), announced the launch of Egypt’s first SPAC, stating: "This achievement marks a significant turning point in the Egyptian market, reinforcing its position as a leading destination for innovative financial investments in the region."
Shawky further indicated that the company aims to raise its paid in capital to EGP235 million through a cash rights issue of EGP225 million, by offering 22,500,000 shares at a nominal/bar value of EGP10 per share. This will be conducted through a private placement for qualified investors and institutions, in accordance with the regulatory rules.
He emphasized that the company plans to pursue a series of acquisitions in the upcoming phase, focusing on promising sectors such as Non-Banking Financial Institutions and financial technology. "This step marks the beginning of a new phase of financial development in Egypt," Shawky said. "We are committed to innovation and attracting capital that contributes to sustainable growth for the Egyptian market."
Tarek Effat, Managing Director of Catalyst Partners Middle East (CPME), expressed his pride in achieving this milestone, stating:
"The launch of Egypt’s first SPAC reflects our strong belief in the potential of the Egyptian market and our intention to offer innovative financial solutions in line with the latest global practices. We aim to attract investments and enable promising companies to realize their full potential."
Effat added that the significance of this achievement for the Egyptian market lies in providing new investment tools that empower emerging and medium-sized companies to reach their full potential through sustainable financing channels, this, in turn, enhances the market's attractiveness to both local and international investors.
He also expressed his gratitude and appreciation to EGX and FRA for their full support, noting that this success would not have been possible without their fruitful cooperation and the facilitation provided by both entities.
Special Purpose Acquisition Companies (SPACs) are innovative financial tools that raise capital through private placements with the aim of acquiring or merging with high-growth potential companies. This model is designed to enable emerging and medium-sized companies to access the funding they need for expansion, thereby supporting the Egyptian economy and enhancing its future prospects.
