DBK Pharma is planning a dual-listing on the Egyptian Exchange (EGX) and the Saudi Stock Exchange (Tadawul) in the first half of 2019.
The pharmaceutical firm is considering to offer about 25% stake on the two markets, sources told Daily News Egypt.
Proceeds of the anticipated initial public offering (IPO) will be used to establish a new manufacturing facility in Obour city to produce sterilizing medical equipment and fluids, in addition to strengthening marketing and production abilities to obtain more medicines.
DBK Pharma’s current capital amounts to EGP 149.1m, distributed at 149.1m shares at a par value of EGP 1 per share.
In February, Saudi Arabia’s Marie Binmahfouz Group had acquired a 25% stake in DBK Pharma at a value of EGP 38.5m.
The company announced higher profits during the first half of 2016, according to a bourse filing.
Net profit rose 2.8% year-over-year to EGP 20.86m from EGP 20.28m.
Earlier, the company delayed its IPO due to the instable status of the Egyptian securities market, which do not reveal the stock’s due fair value.
The company operates with EGP 149.19m, divided into 149.19m shares at EGP 1 each.
The listing committee at the Egyptian Stock Exchange (EGX) approved in April 2015 to list the shares of DBK Pharma Co with capital of EGP 149.2m.
The buzz around initial public offerings in Egypt is growing louder, with more companies announcing plans for share sales.
They join a growing line-up in what could prove the busiest year for new listings in Cairo since the 2011 uprising that ousted President Hosni Mubarak.
Growing confidence in economic policies introduced since the currency float has boosted the Egyptian stock market and is prompting companies to consider share sales.
Property developers Rooya Group and Landmark Sabbour have announced IPO plans, while Carbon Holdings has hired investment bank EFG-Hermes to manage its market debut, Al-Borsa reported March 13.
The government is joining the rush to market and is looking to sell stakes in some public-sector companies, with an initial focus on the banking and oil industries. Banque Du Caire and Enppi are among anticipated listings of state-owned entities.
While the potential to increase participation by Egyptians in stock-market investment is large, some of the biggest companies may wait with IPO plans until the central bank fulfils economists’ forecasts of interest-rate cuts, said Allen Sandeep, head of research at Naeem Brokerage in a recent research note.
