The Egyptian Exchange’s (EGX) trading platform received the new company number 226, Sarwa Capital to be traded on main market’s platform in the presence of Mr. Mohamed Farid, EGX Chairman, Sarwa Capital’s executives and representatives of Beltone Financial Holding the, the company’s global coordinator and Bookrunner; it will be traded with the symbol "SRW.CA".
The IPO and private placement have been implemented for 295.2 million shares, representing 47.2% of the company's shares at the price EGP 7.36 per share, worth a total value of EGP 2.2 billion.
The total number of the IPO shares is 29.5 million shares representing 10% of the shares offered representing approximately 4.7% of the total company’s shares, while the number of private placement shares is 265.6 million shares representing 90% of the total shares offered, representing 42.5% of the total company’s shares.
The IPO was covered 30.1 times, which results in allocation ratio of 3.3%. The total shares bids was 887.4 million shares requested in 2306 orders for 2271 customers, while the private placement was covered 10.8 times worth total bids EGP 21 billion.
The percentage of non-Egyptians "Arabs and Foreigners" in the Private Placement & IPO is 52.3%, while the Egyptians’ percentage is 47.7%.
Mohamed Farid, EGX Chairman, stated that EGX management continues to provide all the needed support and assistance to companies from the various sectors which are wishing to grow through the stock market; this goes in line with the country’s plans to achieve sustainable economic growth.
The EGX Chairman said, "The total IPOs executed during the past 9 months of 2018 amounted to EGP 5.2 billion distributed over 4 IPOs in the different sectors, compared to a total IPOs of 2017 worth EGP 3.9 billion."
Farid stated that the diversity of stocks at EGX strengthens its role in supporting the economic development process currently implemented by the government to reform the economic path.
Moreover, Farid welcomed companies from the different sectors to list on the stock exchange to acquire the necessary funding to support their investment plans and to pave the way for them to enter new markets. He also assured that EGX management saves no effort to develop the trading environment and to facilitate all the procedures to enhance the market’s liquidity and trading, and to increase depth of Egypt’s capital market.
The EGX Chairman highlighted that the high demand of the Arab and foreign investors representing 52.3% of the IPO reflects the trust in the Egyptian market. It is a clear message that Egypt is on the right path through implementing reforms at all levels; financial, monetary and legal.
Bassem Azab, Beltone’s Managing Director, the global manager of the IPO, said that the IPO witnessed a great interest from institutions and individuals both inside and outside Egypt, which was evident in the private placement coverage rates that reached 11 times and the IPO that was covered 30 times.
Azab also pointed out that Beltone always seeks providing the Egyptian market with companies of future. Hence, Sarwa Capital is one of the most attractive companies for institutional investors in the Egyptian market due to several factors which are the free float trading percentage that will reach about 47% after the finalizing its capital increase. Additionally, the company’s growth rate is an average of 52% over the past five years; taking inconsideration that a limited number of companies in the Egyptian market achieves the same percentage.
Furthermore, the consumer finance sector in which the company operates is considered one of the fastest growing sectors in the upcoming years due to its low penetration levels in a market whose population exceeds 100 million.
Finally, Mr. Hazem Mousa, Chairman and Managing Director of Sarwa Capital, said: "The begining of trading on the company's shares at EGX is a step that enhances the company’s growth opportunities." He looks forward at completing the company's expansion strategy to achieve the anticipated objectives.