The e-payment solutions company Fawry is to increase its capital by EGP 400m, at a nominal value, to finance some of its upcoming projects and investment expansions.
The capital raise will take advantage of favourable markets conditions, whilst helping the company to accelerate its strategy in developing mobile services. The cash injection is also set to boost its acceptance of payments on all payment channels, and strengthen its integration of digital solutions.
Fawry’s capital currently stands at EGP 453.6m, following an EGP 100m increase in April through the distribution of bonus shares from the previous EGP 353.6m.
The company’s management team has suggested that the opportunities offered will be funded through an increase in the issued capital up to a maximum of EGP 400m. This is provided that the increase be made at the nominal value of the company’s shareholders.
Fawry has added that its Board of Directors and shareholder representatives from the Board of Investors and financial institutions welcomed the idea of the increase, and expressed their desire to contribute. This input from shareholders and board members was provided both before and after the company offered its shares on the Egyptian Exchange (EGX).
Fawry is still working on entering the UAE market, which is expected to be completed by the end of 2020. This will be a breakthrough for the company, given it will lead to accessing a lucrative payment infrastructure in the GCC country.
Pharos Research sees that Fawry is growing fast and that though might entail some risks. The company’s management is focused on taking all the necessary controls and maintaining key resources.
The market provides significant opportunities to support such fast growth, with Fawry already ahead of competition. The company remains buoyant regarding new entrants, since the market has huge potential.
Fawry and e-payments companies will fall under the supervision of the Central Bank of Egypt (CBE), but the management feels the company is ahead of the game regarding compliance and general readiness for new regulatory requirements.
