The IPO of the state-run fintech platform “e-finance” is expected to be covered 50 times


The coverage of the initial public offering (IPO) of the Egyptian state-run fintech and electronic payment platform, e-finance, would reach 50 times by the end of Sunday’s trading session at the end of the day. Egyptian Stock Exchange (EGX), sources told Daily News Egypt.

The required IPO coverage is around 112.5 million, while the size of the entire IPO is estimated to be around 25 million shares. The e-finance offer was hedged around 22 times during last Thursday’s trading session.

The strong demand for the e-finance subscription reflects the attractiveness of the company, as it is a giant in the financial technology sector, which almost completely monopolizes the public financial sector, and therefore the enormous volume of its transactions and market share.

The e-finance offer has been agreed for a period of six working days from October 10 to 17, with a maximum price of EGP 13.98 per share.

The e-finance private placement coverage has also been completed, with coverage reaching 3 to 4 times. International investment funds from the US, UK and other European countries participated in the private placement.

The capital of e-finance reached approximately 800 million EGP, divided into 1.6 billion shares, with a par value of 0.5 EGP per share.

The company was created in 2005, and its ownership structure was distributed before the offer as follows: the National Investment Bank holds 63.6% of the capital, while the National Bank of Egypt (NBE), Banque Misr, Egyptian Company for Investment Projects and EBC have 9.09% each.

In contrast, EGX gained EGP 12.6 billion last week, coinciding with the e-finance offering, recording a collective rise in its indices, and its benchmark EGX30 closed at 10,995 points, recording an increase of 4.36%.

The EGX30 continued to climb for the eighth consecutive session. The current rebound is still accompanied by low volumes and narrow market width, with the number of declining stocks exceeding the number of increasing stocks.

Additionally, the rebound is mainly attributed to the bullish performances of (COMI.CA), (FWRY.CA) and (EKHO.CA), while the majority of blue chips have yet to share the rally.

Despite the optimism of the market thanks to the e-finance offer, expectations are rising with increased pressure on the stock markets, inflation accelerating in the United States in September to 5.4% following the persistence of shortages offer and employment. Analysts believe some supply chain and inventory issues will linger a bit longer, at least until the end of this year, before rising oil prices this month join these crises. The global energy crisis is sounding the alarm bells in the United States and then casting a shadow over the rest of the world.

Mohamed Asran, Managing Director of Arzan Securities Brokerage, said that adjusting the liquidity of the new offerings will limit the market benefits of offers that will start with “E-Finance”. He explained that it is essential to resolve the crisis of capital gains tax legislation during the last month of the year with the accumulation of macroeconomic crises and high inflation and their impact on performance. actions.

He expects the negative impact of the upcoming implementation of the law to be strongly evident in the performance of the main index, pushing it towards the 8,500 point level by the end of this year.

Mohamed Othman, head of the technical analysis department at Al Ahly Pharos, said the first level of support stands at 10,660 points. Short-term investors are advised to take a profit from recently opened trades, while those who wish to hold can drag their protective stop to the nearest support level for each stock separately.

The capped EGX30 rose 3.6%, stable at 13,341 points, and the EGX100 EWI fell 0.4%, stable at 3,593 points.

The market recorded an exchange value of EGP 25.1 billion at the end of last week, through the circulation of 2.1 billion shares, carrying out 176,000 buy and sell transactions.

Foreign transactions recorded a net sale of 662.5 MEG, with an acquisition rate of 15.1% of share purchases and sales.

Stocks accounted for 28.2% of the trade on EGX over the past week, while the value of bond trades was around 71.8%.

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