E-Finance: We are studying the acquisition of two companies in Egypt

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12:46 PM

Wednesday 20 October 2021

I wrote – Shaima Hefzy:

Ibrahim Sarhan, Chairman of the Board of Directors of E-Finance, said that his company is considering acquiring two companies in the local market.

Sarhan added, in response to a question by Masrawy, during a conference announcing the start of trading on the company’s shares today, Wednesday, that the success of the company’s listing on the stock exchange opened great areas to work with other partners through acquisitions and mergers.

He pointed out that the company has a plan for future expansions, which will be financed by about 2.3 billion pounds, the proceeds of increasing the company’s capital in return for selling 10% of its shares as part of the offering process.

e-finance has offered about 26.1% of its capital in the capital market as an opening for government offerings since 2006, and it is the largest offering on the Egyptian Stock Exchange, with a value of 5.8 billion pounds and a capital of 22.4 billion pounds.

The public offering was covered 61.4 times and the private offering was covered 6.8 times, with a total order value of 59.5 billion pounds, according to stock exchange data.

During the press conference, Sarhan indicated that the company has great opportunities for growth, within the framework of the expected growth of this sector, until it was able to achieve revenues and net profit during the first six months of this year equal to the total of what it achieved in 2020.

The company received many requests from Arab and foreign investors and investment funds, during its foreign promotional tour, which prompted the company and the government to increase the offering percentage by about 10% distributed among a number of funds.

“The goal of diversifying the funds in the offering was a strategic goal, and the decision to increase was taken in a very short time through the convening of the Ministerial Committee for IPOs and the company’s general assembly, and we raised the percentage,” according to Sarhan.

He explained that the majority participating in the offering was for foreigners, 72%, including institutions and individuals, and the rest were local investors.

The private placement of the company’s shares was covered by international investment funds from Europe, America, Africa, England and Sweden, including Goldman Sachs, in addition to Kuwait and the UAE, according to Sarhan.

Sarhan said that the success achieved by e-finance as a holding company, in addition to the experiences gained by the company’s employees in the areas of governance and preparing the company for the public offering on the stock exchange, are encouraging factors for more offerings in subsidiaries.

“During the next two years, and with the subsidiaries achieving profits, the listing on the stock exchange will be a possible and useful step, especially with the experiences we gained during the offering of the “e-finance” company, according to Sarhan.

e-finance also invests in a variety of digital companies, and owns five subsidiaries including Khalis, a digital payments platform for individuals.

Sarhan pointed out that the growth of the financial services and digital payments sector is witnessing significant growth during the current period, and is expected to witness more growth in the future, and this opens the door to more companies, acquisitions and mergers in this market, whether in the local or regional market.

e-finance looks at investment opportunities in the local market by providing digital transformation services in the field of transportation and tourism, and the sectors in which digital payments are growing, in addition to expanding in African countries, especially Libya and Sudan.

Sarhan said that the company also has good opportunities in the Iraqi market, as part of what the Iraqi government seeks in the country’s development efforts.

E-Finance hopes that the conditions of the digital bank license will apply to it, so that it will be able to obtain the E-bank license.

Sarhan said, “We hope that the company will comply with the terms of the license that will be presented by the Central Bank. We are focused on investing in everything related to digital payments, digital transformation, and insurance.”

E-Finance was established in 2005 as an Egyptian company specialized in developing and managing the technological infrastructure for digital financial transactions, and it is one of the giants of the financial technology sector, which has an almost complete monopoly on the government financial sector.



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