Catalyst Partners has submitted paperwork to establish Egypt’s first Special Purpose Acquisition Company (SPAC), the firm announced on Tuesday. The company, named Catalyst Partners Middle East, will operate as a venture capital firm focusing on acquiring businesses in the non-banking financial services and fintech sectors.
The move comes after the Financial Regulatory Authority (FRA) issued amendments to listing and delisting rules earlier this year, paving the way for SPACs to operate in the Egyptian market. FRA Decisions No. 140 and 148 of 2024 revised regulations governing the listing and trading of SPAC shares on the Egyptian Exchange (EGX).
“We look forward to leveraging the regulatory environment set by the FRA to establish the first financing and acquisition company in the capital market,” said Maged Shawky, chairperson of Catalyst Partners. “Catalyst Partners Middle East aims to capitalize on the investment opportunities in the Egyptian market, particularly in the non-banking financial sector.”
Catalyst Partners Middle East aims to provide a new financing channel for non-banking financial institutions (NBFIs) and fintech platforms through the EGX. Shawky said the company plans to be the first SPAC listed on the exchange, offering a gateway for NBFIs and fintech startups to enter the market.
“Global market experiences offer valuable lessons and the FRA’s recent decisions have paved the way for this initiative,” Shawky added.
Shawky expressed his deep appreciation and gratitude to the FRA leadership for their continuous efforts in developing and promoting the non-banking financial sector. These efforts include innovating and offering diverse financial solutions and products, creating a business environment that enhances sector competitiveness, attracts investments, and protects stakeholders and investors. The recent completion of the comprehensive regulatory framework for establishing, licensing, listing, and trading SPACs is a testament to these efforts.
The company’s managing director, Tarek Effat, said Catalyst Partners Middle East will disclose its plans for private placement after completing the establishment process and temporary listing on the EGX. The firm will then outline its target acquisitions as an initial step towards the De-SPAC process, adhering to FRA timelines.
SPACs are companies established and licensed by the FRA as venture capital firms with the sole purpose of acquiring other companies. They raise funds through a private placement in the capital market and are required to complete acquisitions within two years of their temporary listing.
