Fawry IPO set at USD 0.3906, trade starts on 8 August

A fortnight ago, we reported that Fawry was looking at an IPO evaluation between USD 265 million and USD 330 million, set to go public before Eid Al Adha. This plan is on track as Fawry, the Egyptian payment company, has received the regulatory approval to be listed on the Egyptian Exchange and will go public on or around the 8th of August, just before Eid holidays begin.

Set at a price of EGP 6.46, i.e. USD 0.3906, Fawry will be offering 36% of the company’s shares, which account for 253.6 million shares. This gives it an evaluation of EGP 4.56 billion, i.e. USD 275 million — again, on track with its plans.

Fawry's sale of 36% of shares will comprise of a secondary sale by PSI Netherland Holding BV, one of its current investors. As reported by Enterprise, it issued a statement declaring that only 5% of shares will be on retail offer, while the rest will be sold to institutional investors, including Actis, a growth markets investor from London, that will receive 7.2% of these shares, while Banque Misr and the National Bank of Egypt will receive another 7% each, and the other 9.8% will go to undisclosed institutional investors.

The 10-year-old company founded by Ashraf Sabry & Mohamed Okasha, currently offers over 250 electronic payment services through its network of over 100,000 service points across 300 cities in the country, including ATMs, mobile wallets, retail shops, post offices, and little vendor kiosks.

Its online payment gateway allows online businesses to collect payments from their customers using different methods including cash, credit cards, and mobile wallet.

In 2018, Fawry reported profit of EGP 152 million (approximately USD 9.167 million), which denotes a 41.2% rise from 2017. As per EFG Hermes, who is managing Fawry’s listing on the stock exchange, the company also processed 600.1 million transactions in 2018, with a total value of USD 2.1 billion.

The institutional offer started on Friday when it received the regulatory approval, as reported by Menabytes; this will be ending in three days, on the 31st of July, 2019. While the retail offer started on the 28th of July, and is expected to run until the 5th of August.