A source has told Daily News Egypt that the IPO for Taaleem Management Services Company (Taaleem), the education management arm of CI Capital, will be concluded in the first half (H1) of 2021.
The source added that the IPO’s conclusion will have a positive impact on the business through advisory gains. CI Capital Holding owns an effective stake of 16.5%.
In fiscal year (FY) 2019/20, Taaleem reported that it will see an earnings before interest, taxes, depreciation, and amortization (EBITDA) north of 50%, with expected EBITDA growth of 40%, while being cash rich and debt free.
The effect of rate cuts is minimal on the group’s overall margins of the group. Rate cuts had a positive impact on the microfinance business as they lend at flat rates, with a muted impact reported on leasing as they borrow and lend on floating rates. The latter is also highly leveraged so only the equity portion is affected.
At the same time, the group reported a minor negative impact on its margin lending portfolio, given that it is a big part of its equity.
CI Capital concluded the biggest securitisation issuance in its history in December 2020, worth EGP 2.7bn. Securitisation gains in the fourth quarter (Q4) of 2020 could reach 50% of quarterly profits.
