Renaissance Capital, in the capacity of joint global co-ordinator and joint bookrunner, has completed an EGP5.84bn ($372m) initial public offering (IPO) for e-finance, an Egyptian state-owned fintech company. 

The transaction is the largest IPO in Egypt since 2007, the first IPO out of the Government of Egypt’s IPO Programme and the first privatisation since 2005.

Amr Helal, CEO, North Africa, Renaissance Capital, said: “We are very proud to be part of this landmark transaction, the first IPO from the Government IPO programme. The e-finance offering attracted significant demand from international emerging market and fintech investors, as well as GCC and domestic institutional and retail investors, and will undoubtedly pave the way for additional offerings on the EGX.”   

The IPO's final size was 417.8m shares, upsized over 60% from the initial 257.8mn shares and priced at the top of the EGP12.50-13.98 range. 

The IPO comprised a primary and a secondary component, with government-related entities – National Investment Bank, National Bank of Egypt, Banque Misr, Egyptian Banks Company for Technology Advancement (EBC), and the Egyptian Company for Investment Projects (ECIP) – as selling shareholders. 

The post-money free float is 23.5% with a market capitalisation on listing of c. EGP22.4bn ($1.4bn).

The institutional book saw strong participation from international emerging market and fintech investors, as well as GCC and domestic funds and HNWIs and was covered c. 6.8x, while the retail tranche of 25.77m shares was covered c. 61.4x. 

Trading on EGX will commence on October 20.

Simon Aird, Head of International Equity Capital Markets, Renaissance Capital, said: “We are happy to be part of the deal’s success and to witness that the fintech sector in Egypt enjoys terrific demand from investors, both retail and institutional, local and international. Total foreign investor allocations to the book were around 72% – a great outcome and one of the key priorities for the Government of Egypt to attract quality FDIs.”

e-finance Investment Group is a homegrown developer of digital payments infrastructures that was established in 2005 to develop the Egyptian Government’s financial network. 

Over the course of nearly two decades, the Group has penetrated all corners of Egypt’s digital market and transformed itself into a fully-fledged consolidated entity with a comprehensive portfolio of subsidiaries, covering the full spectrum of digital payment services. 

With a dynamic business model and a flexible organizational structure, e-finance is able to strategically focus on multiple target markets through its subsidiaries and maximize its ability to unlock value in the digital payments space. 

The Group operates a unique one-stop-shop model covering the entire e-payments value chain through several specialized subsidiaries, allowing the Group to diversify its operations and cover further links in the digital value chain.