Fawry Is One Of The Three Egyptian Companies Preparing To Go Public This Year – And This IPO Could Be The Largest Since 2015

By  |  July 11, 2019

Fawry, an Egyptian startup that specializes in electronic payments, is reported to be preparing for an Initial Public Offering on the Egyptian Stock Exchange.

The company is one of the three companies planning to go public in the North African country by the end of this year, and the specifics of the listing foreshadow that this could be the largest Egyptian  IPO since 2015. 

Reuters reported four months ago that three private companies have their eyes set on going public before the end of 2019. The information which was disclosed by the chairman of the Egyptian Stock Exchange, Mohammed Farid, revealed that two of the three companies have a combined USD 807.78 Mn market cap, while the last is awaiting valuation. 

While the names of the companies and their expected IPO values remain an inside knowledge, Fawry’s co-founder and Managing Director, Mohamed Okasha (featured image), informed in a March interview this year that the company plans to list its shares either this year or early next. This development comes hot on the heels of Airtel Africa’s listing on the Nigerian Stock Exchange. 

According to some media reports, Fawry will go public within the next three weeks, doing so at a valuation of USD 330 Mn. Reportedly, the startup will list 45 percent of its shares by August 8, probably the last working day before the Eid Al Adha holidays. The fintech will be raising between USD 120 Bn to USD 150 Bn, which if sufficed would be the largest Egyptian IPO since 2015. 

Emmar Msir, one of the largest real estate companies in Egypt and the developer of iconic projects, debuted its stock on the Egyptian Exchange under the ticker EMFD.CA on July 2, 2015.

The initial public offering saw the subscription to almost 3.23 billion shares – 36 times the total shares offered for individuals, culminating in 90 million shares – 15 percent of the floatation. Emaar Misr’s IPO proceeds amounted to around USD 137 Mn – the largest listing round in Egypt so far – and the listing started on June 16 and ended on 25 June. 

Fawry targets a valuation between USD 265 Mn to USD 330 Mn from the IPO, thrice the amount it received during its majority stake exit that involved a league of investors – Helios Investment Partners, the Egyptian-American Enterprise Fund and the MENA Long-Term Value Fund.

Reportedly, all three investors acquired an 85 percent Fawry stake at a valuation of USD 100 Mn in 2015. MENAbytes reports that ten major shareholders are planning partial and full exits with the IPO. 

Ashraf Sabry and Mohamed Okasha founded Fawry in 2008, and the fintech startup says it currently covers 250 electronic payment services. The company’s network has more than 100,000 service points across 300 Egyptian cities, including ATMs, mobile wallets, post offices, retail outlets and vendor kiosks.

Fawry’s online gateway allows online businesses to collect customer payments via a variety of methods – credit cards, cash, and mobile wallets among others.

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