The Ministry of Public Enterprise Sector has revealed that the initial public offering of Ghazl El-Mahalla Football Company, will take place from 12 June to 1 July 2022. It will be the first football company to be listed on the Egyptian Exchange (EGX).
Prime Capital will promote and cover the subscriptions.
The company’s business plan reflects a healthy cash flow for the company and an average expected return of 21.5%, as the main factor affecting the share price is the expected successful financial performance of Ghazl Al-Mahalla Football Company. With the longstanding name of Ghazal Al-Mahalla as a club, and a wide fan base, it is one the six Egyptian football giants who won the General League Championship; which gives confidence in the success of the company’s future business plan.
The IPO will ensure an increase in the company’s capital by EGP 98m to EGP 200m. Investors, whether natural or legal persons, can subscribe to the shares of Ghazl El-Mahalla Football Company by submitting subscription applications through brokerage companies. The subscription value is EGP 1.02 per share (the minimum subscription is 1,000 shares and the maximum subscription is two million shares), through the EGX OPR transaction system.
After the end of the subscription period, the EGX and Misr for Central Clearing, Depository, and Registry (MCDR) will match the applications registered by all brokerage firms with the funds collected in the brokerage companies’ subscription receiving accounts.
It is worth mentioning that establishing Ghazl El-Mahalla Football Company was completed in January 2021, to be the first Egyptian joint stock company specialized in football activity, after separating the football activity in Ghazl El-Mahalla Club, affiliated to Misr Spinning and Weaving Company in El-Mahalla El-Kubra, and one of the companies of the Ministry of Public Business Sector, to be an independent entity.
The capital of Ghazl El Mahalla Company consists of an in-kind share of the Misr Spinning and Weaving Company in Mahalla, about EGP 65m, in exchange for the right to use the name and stadium for a period of 20 years. The capital was increased by EGP 37m from Egyptian and Gulf investors and institutions in an offering, making the paid up capital worth EGP 102m before the increase of EGP 98m for the public offering.
