CAIRO: Walid Zaki, the chairman of Pioneers Holding, announced a LE 885 million capital increase for the company, which will raise total capital to LE 2.5 billion from LE 1.6 billion.
The capital increase will be conducted through a private placement of shares, and the proceeds of the private placement will be used to fund the company’s expansion program, according to a press statement.
The placement is targeting large institutions in Egypt and the Middle East as well as individually qualified investors. In addition, a portion of the shares will be allotted to employees of the company.
The proceeds from the private placement will be used to fund brokerage expansion plans in Egypt, the UAE, Saudi Arabia and Syria. They will also fund new activities of the company. which include investment banking and asset management.
In addition, the proceeds will fund the establishment of a new company: Pioneers Capital will launch private equity funds and finance acquisitions for the holding in the MENA region (Jordan, Qatar and Morocco).
Pioneers Holding also has plans to establish brokerage joint ventures in other MENA markets.
The proceeds will also fund capital increases for some of its affiliate brokerage companies (Prizma, Pioneers Securities Egypt).
In 2007, Pioneers Holding acquired 100 percent of the International Investment Advisor (TIIA), a boutique firm whose activities include securities underwriting and corporate finance advisory services.
Pioneers Holding also has an asset management affiliate, Amwal Financial Investment Company. It is envisioned that Amwal will increase its asset management portfolios and launch new funds.
The chairman indicated that the private placement will close by mid May and the shares will then be listed on CASE and trade in the secondary market some time in June.
