Top of mind: Normalizing the Fed’s balance sheet

Ahmed Mohamed,

Senior research specialist

May 27, 2018

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CI Capital Holding S.A.E. (“CI Capital” or the “Group”), a leading Egypt-focused diversified financial services group, announces today the price range for an offering of 225,637,282 ordinary shares on the Egyptian Exchange (“EGX”), representing 41.5% of the Group’s share capital post completion of the Offering and Capital Increase (as defined below). The Offering consists of a secondary sale of shares by the Group’s current shareholders (the “Selling Shareholders”). Following the Offering, certain of the Selling Shareholders have agreed to use a portion of the proceeds they will receive from the Offering to subscribe to 132,727,813 newly issued shares in a closed subscription at the Offer Price (as defined below) (the “Capital Increase”), subject to certain conditions.

• The indicative price range for the Offering has been set at between EGP 7.29 and EGP 8.26 per share, giving the Group a pre-offering valuation range of EGP 3.0 billion to 3.4 billion. The final offer price (the “Offer Price”) may be revised upward or downward from this indicative price range

• The Offering will be made in two tranches:
– an institutional offering of 203,073,554 ordinary shares to qualified institutional investors, representing 90% of the Offering (the “Institutional Offering”) and,
– a retail offering of 22,563,728 ordinary shares to individual and other investors in Egypt representing 10% of the Offering (the “Retail Offering”).

• The closing of the book building process for the Institutional Offering and the final price announcement are expected on April 19th 2018.

• The Retail Offering subscription period is expected to run from April 17th to 24th 2018.

• Trading of the Group’s shares on the EGX is expected to begin on or around April 30th 2018.

Commenting on the Offering, the Group’s Co-CEO, Hazem Badran said: “The breadth and depth of our diversified suite of financial solutions, our significant scale and market leading positions and our solid financial performance allow us to be optimistic and ambitious about our future. We believe we are well positioned to capitalize on the rebound of the Egyptian economy, as we seek to leverage Egypt’s attractive long-term growth prospects, and solid underlying fundamentals in all our businesses. We are looking forward to meeting with investors in Egypt, the region, and across global markets to discuss what we believe to be a compelling investment case, and present our strategy and vision for the future of the Group.”

The Group recorded EGP 1,850mn in revenue in 2017 and EGP 251mn in net profit attributable to shareholders, registering triple-digit CAGR (2015 – 2017) of 144% and 104%, respectively. The Group boasts industry-leading return metrics, with return on average equity amounting to 32% for 2017.

Completion of the Offering is conditional upon (i) receiving approvals from the Financial Regulatory Authority (“FRA”) and the EGX, (ii) finalizing the book-building process and (iii) certain customary conditions associated with the Offering.

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.