E-Finance – Egypt’s first and largest fintech company is going public

E-Finance, Egypt’s first and largest fintech company is expected to go public via the largest IPO on the EGX since 2007.  Processing more than EGP 2 Trillion in transactions last year, E-Finance is Egypt’s exclusive entity authorized to process and settle government payments and collection transactions. It is going to be the second technology company to list on the EGX. The long-awaited IPO is going to be Egypt’s first IPO that is part of the government IPO program which has been postponed several times.

The company announced the price range of the IPO ranging from EGP 12.50 to EGP 13.98, making the valuation somewhere between EGP 22.2 Billion & EGP 24.8 Billion. Check the company Public subscription Notice.

What is an IPO ?
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Here is what we’re covering:

  1. Why are we excited?
  2. How can you be part of this?
  3. The Finer Details: More on the IPO and the company

Why are we excited?

The largest IPO since 2007

The EGP 3.2 Billion – EGP 3.6 Billion offering is the largest since Talaat Mosatafa’s EGP 4.5 Billion offering in 2007. E-finance is the largest e-payments company in Egypt processing, 26 times Fawry’s throughput value. The company has demonstrated strong financial performance over the last three years, with revenues up by a CAGR of 30% from EGP 733 Million in 2018 to EGP 1,232 Million in 2020. E-finance is also the largest producer of payment cards in Egypt.

The second tech company to list on the EGX

Evident by Fawry’s stock market performance since its IPO in 2019, investors are bullish about the technological scene in Egypt. The e-payments scene in Egypt has never been more exciting with the government’s plans to go cashless and digital.

The bigger part of the IPO is a capital increase

Most of the latest IPOs were secondary sales of shares by existing shareholders. This means shareholders selling part of their ownership in return for cash. This IPO is different, 69% of the proceeds are to be injected into the company to fuel further growth.

Your Investment in the IPO is expected to be protected

The selling shareholders are expected to establish a stabilization fund that covers 100% of the IPO retail offering. The purpose of the fund is to offer investors the chance to return their shares to the selling shareholder at the same IPO price after 30 days. This means that if the price of the stock falls below the IPO price within the first 30 days, you can sell it back at the same price you bought it for. 

The first IPO as part of Egypt’s government IPO program

The IPO program intends to list 23 public sector companies on the EGX, 9 of which are already listed on EGX. The expected value of the IPOs to be around EGP 80 billion, which would act as a means for raising the market capitalization and liquidity in the EGX. The IPO program was postponed due to unfavorable market conditions, first the emerging markets crisis of 2018 and then the Covid-19 coronavirus pandemic.

How can you be part of this?

  • Download Thndr app and open an investment account – If you already have an account with Thndr, you are good to go
  • Fund your account
  • Send an email with your subscription order to orders@thndr.app before Sunday October 17, 2021at 12pm
  • Kindly note that the minimum subscription amount is 100 shares according to the company’s announcement 

The Finer Details

The Offering

Efinance-Blog-14

E-finance in a Nutshell

E-Finance is positioned as a unique player in payment digitization. The company has a dynamic business model covering the entire digital payments infrastructure which has allowed it to act as a central hub for all government-related payments.

The Management

Financial Highlights

How does E-finance compare to Fawry?

More Information

  • The “Intention To Float”: A brief document developed by the company to announce their plans to list the company’s shares and  highlight its value proposition
  • The “Public Subscription Note”: A tell-all document is required of all companies going public in Egypt and should include all information about the company. It should be required reading for anyone thinking of investing. It is expected to be published on 9 October 2021