The initial public offering (IPO) made B Investments Solutions was oversubscribed 54 times, as investors sought to purchase 268m shares while only 5m were offered.
Chairperson of the company, Hazem Barakat, told Daily News Egypt that the private offering, until Thursday, reached a demand eight times the available supply of 38m shares, while the public offering until Thursday was 28 times oversubscribed, rising to become 54 times oversubscribed with a total of 268m shares requested one hour before the IPO’s close.
The company will increase its capital by issuing 38.1m shares to be allocated to qualified investors, representing 32.6% of the company’s capital before the increase. The company will also sell 5m, shares currently being issued in the public offering. The participating sellers in the IPO will then conduct private subscription to increase the capital on the same number of sold shares within one month of closing the offering.
Sigma Capital, the company’s IPO manager, has set a price of EGP 10.75 per share for both the private and public offerings. The private subscription and subscription requests were initiated on 6 March 2018 and closed on 25 March.
Independent financial adviser Grant Thornton set the fair value of B Investments at EGP 13.97.
Mubasher Trade recommended buying the shares, saying the company’s strength lies in the solid diversification of the its portfolio. The company operates in direct investment and is supported by a strong shareholder base, such as the European Investment Bank (EIB) and high net-worth individuals, which promotes the company’s governance in line with international standards.
The company added that the joint venture investment model allows B Investments to participate in investment opportunities that can exceed the company’s financial capabilities and secure a strong management team with more than 300 years of combined experience.
Mubasher Trade has set the price for shares at EGP 10.78 with a recommendation to buy at an expected yield of 19% on the offering price of EGP 10.75.