Ordinary shares of CI Capital Holding, a leading diversified financial services group, start trading today on the Egyptian Stock Exchange at 10:00AM, under the symbol “CICH”, opening at EGP 7.70/share (implied market capitalization of EGP 3.2bn).
The book building process was successfully concluded for the global institutional offering of 203,073,554 ordinary shares (90% of the offering) to qualified institutional investors & HNWI. The institutional offering was 6.1x oversubscribed, with demand generated of c. EGP 9.9bn (c. USD 558mn) from the US, Europe, UK, South Africa, the GCC and Egypt.
The subscription period for the retail tranche (22,563,728 shares representing 10% of the offering) ended on Tuesday, April 24th, with demand raised in excess of EGP 5.1bn (c. USD 290mn) and an oversubscription of 29.5x.
CI Capital offers a wide range of diversified and integrated financial services with market-leading leasing, microfinance, and investment banking franchises. CI Capital seeks to capitalise on Egypt’s potential growth prospects and strong fundamentals, including the largest population in the Middle East and North Africa (MENA) region in Egypt. The country has one of the largest diversified economies in the region and a number of high-growth and relatively less penetrated markets which CI Capital’s leasing (Corplease) and microfinance (Reefy) subsidiaries target.
Notably, the selling shareholders in the offering will undertake an EGP 1.0bn capital increase in CI Capital via a closed subscription to fund the expansion of the Group’s non-banking financial services, including its leasing, microfinance, asset management and margin lending activities and to fund potential acquisitions or establish greenfield operations, as well as to strengthen its balance sheet to support new activities, including merchant banking, should attractive opportunities arise. The Company intends to use any remaining proceeds for general corporate purposes.
Commenting on the conclusion of the book building process and the commencement of trading, Chairman and Group CEO, Mahmoud Atalla stated, “CI Capital presents a remarkable journey as being one of the key financial players in Egypt, offering a diversified suite of financial solutions with significant market leading positions. As we embark on our first day of trading, we look forward to continue growing our unique business and maximizing value for our shareholders.”
CI Capital recorded EGP 1,850mn in revenue in 2017 and EGP 251mn in net profit attributable to shareholders, registering a triple-digit 2015-2017 CAGR of 144% and 104%, respectively. The Group boasts industry-leading return metrics, with return on average equity amounting to 32% for 2017.
The Group’s Co-CEO, Hazem Badran, stated, “We are optimistic about the success of the IPO and CI Capital’s ability to implement its planned expansion strategy. The strong participation of international financial institutions in this offering reflects the overall positive sentiment of the Egyptian capital market.”
Jefferies International Limited and CI Capital Investment Banking acted as joint global coordinators and bookrunners on the offering, while Norton Rose Fulbright was the international counsel to the Group. White & Case LLP acted as underwriters’ counsel, Matouk Bassiouny was the local counsel, along with HC Brokerage and Pharos Securities Brokerage who acted as placements agents.