CI Capital Holding S.A.E (“CI Capital” or the “Group”), Egypt’s leading diversified financial services group, announces today its intention to proceed with an initial public offering (the “IPO” or the “Offering”) and apply for admission of its ordinary shares to listing and trading on the Egyptian Exchange (“EGX”).
DETAILS OF THE OFFERING
The Group intends to offer up to 246.9 million ordinary shares on the EGX, representing up to 43.6% of the Group’s share capital post completion of the Offering and Capital Increase (as defined below). The Offering is expected to consist of a secondary sale of shares by the Group’s current shareholders (the “Selling Shareholders”). Following the Offering, the Selling Shareholders will use a portion of the proceeds they will receive from the Offering to subscribe in a closed subscription for up to EGP1.0 billion in newly-issued shares at the Offer Price (as defined below) (the “Capital Increase”), subject to certain conditions.
The Offering will include (i) an International Offering to institutional investors in a number of countries including Egypt and (ii) a Retail Offering to retail investors in Egypt. Both the International Offering and Retail Offering will be offered at the same price per share, which shall be determined through a book building process (the “Offer Price”). .
The International Offering is being offered outside the United States in reliance on Regulation S (‘‘Regulation S’’) under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and to certain qualified institutional buyers (‘‘QIBs’’) (as defined in Rule 144A of the Securities Act (‘‘Rule 144A’’)) in the United States in reliance on Rule 144A or another exemption from the registration requirements of the Securities Act.
The Group intends to use the proceeds raised from the Capital Increase to (a) expand its existing businesses, including inter alia leasing, microfinance, asset management, and margin lending (b) fund its expansion in new areas of non-banking financial services, (c) strengthen its balance sheet to support new activities including merchant banking and (d) for general corporate purposes.
The Group is currently in the process of obtaining the required approvals with regards to the Offering, including approvals from the Financial Regulatory Authority (“FRA”) and the EGX. Completion of the Offering is expected to take place in Q2 2018, subject to market conditions and obtaining the relevant regulatory approvals.
Jefferies International Limited and CI Capital Investment Banking are acting as Joint Global Coordinators and Bookrunners on the Offering. Norton Rose Fulbright is International Counsel to the Group. White & Case LLP is Underwriters’ Counsel. Matouk Bassiouny is Local Counsel. HC Brokerage and Pharos Securities Brokerage are acting as Placements Agents