Top digital payments company Fawry to sell 36% stake in Cairo float

Egyptian digital bill payments company Fawry plans to float up to a 36 percent stake in an initial public offering in Cairo bourse, IPO manager EFG Hermes said in a statement on Sunday.

The company intends to offer up to 254,629,483 existing ordinary shares representing 36 percent of its outstanding share capital, currently owned by PSI Netherland Holding B.V., to be listed on the Egyptian Exchange (EGX), according to EFG statement.

The offering will include a local private placement to institutional investors outside the United States, Australia, Canada, and Japan (the institutional offering). It will also involve an Egyptian public offering to retail investors in Egypt (the Egyptian retail offering, and together with the institutional offering, the combined offering).

“Shares offered in connection with the Institutional Offering and the Egyptian etail offering will be offered and sold at the same price (the offer price).” Fawry’s statement read.

Fawry received the registration approval from the Egyptian Financial Regulatory Authority to register in anticipation for its listing on EGX and offering of the shares in the Combined Offering, it added.

The company will complete the listing procedures with the EGX and obtain the regulatory non-objection to publish the public subscription notice (PSN) in order to proceed with the Combined Offering and for the shares to be admitted for trading on the Egyptian bourse.

“Fawry has succeeded in establishing an unparalleled network that serves and integrates consumers, merchants, and corporates through its digital payment enabling services.” Fawry’s chief executive Ashraf Sabry said.

“Fawry aims to continue expanding its service offering to all its clients.”

EFG Hermes Promoting and Underwriting will act as the sole global coordinator and bookrunner for Fawry’s combined offering. Zulficar and Partners will be the combined offering’s local counsel, meanwhile Zaki Hashem and Partners will act as local counsel to the issuer, the statement concluded.