MM Group submits IPO request to EGX to float 30% of its capital

Law firm Zaki Hashem & Partners has submitted an official request on behalf of MM Group to the Egyptian Exchange (EGX) to float the latters shares.

Partner at Zaki Hashem & Partners, Helal El Hossary, said that the maximum price set is EGP 6.06 per share, with fair value of EGP 6.75, following the division of the company and the approval of the EGX to list MM Group for Industry & International Trade.

The company has earlier filed documents to amend the listing of shares after the restructure of horizontally dividing the company.

The mother company will hold EGP 245.5m of the firm’s capital, distributed over 396m shares with a nominal value of EGP 0.62 per share, instead of the same 396m shares with a nominal value of EGP 1 per share previously.

Director of investment banking at Beltone Financial, Mohamed El Akhdar, said previously that the offering aims to raise EGP 750m through expanding the shareholder base and attracting new investors through private and public offerings. The private offering is expected to see the largest stake of the offering with 85% offered to foreign and Arab institutions, while the remaining part will be channelled for the public IPO.

El Hossary said that the company is now promoting the IPO in Egypt, the Gulf countries, and Europe as the offering date is set for the end of March.

Meanwhile, he pointed out that Zaki Hashem & Partners is advising three companies in 2017: MM Group, El Farasha Co for printing and packaging, the IPO of which was postponed to the end of the year or the coming year, and another real estate company, along with 10 acquisitions.

El Hossary noted that the flotation of the pound maximises the investment opportunities in the Egyptian market, making it more attractive to investors.

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