MM Group for Industry & International Trade (MTI) has announced that the initial public offering (IPO) and the private offering targets maximizing its shareholders base in order to be traded on the Egyptian Exchange (EGX) at a maximum of 118.8 million shares.
These shares constitute 30% of the company’s capital, which is distributed on 396 million shares. The price is set at a maximum of EGP 6.06 per share, in accordance with EGX Listing regulations and conditions.
Beltone Financial is the IPO manager and BDO Consulting serves as the financial advisor.
The private offering constitutes around 85% of MTI’s shares, 100.9 million shares, which is 25.5% of the company’s shares.
Whereas the IPO constitutes 15% of the offering, around 4.5% of the company’s shares (17.8 million shares).
The private offering targets institutions with strong financial solvency, such as banks, insurance companies, investment and pension funds and money-management firms, in addition to individuals with strong financial solvency and brokerage experts. As for the IPO, it targets both individuals and legal persons.
Starting from April 2nd trading session, private and public offerings will be available at a minimum of 900 thousand shares without ceiling for the private offering, and a minimum of 100 shares with a maximum of 900 thousand shares for the public offering, the IPO prospectus shows.
Private offering buy orders may be placed at a maximum price of EGP 6.06 per share. The final price will be defined via bookbuilding, and announced by Tuesday, April 4, which is three days prior to closing the offering, which will be closed on April 6.
As for the IPO buy orders, they will be placed at a maximum price of EGP 6.06 per share starting from Sunday trading session, noting that the final price will be defined after closing the private offering, which is three days prior to closing the IPO, which will be closed on April 6.
The IPO manager will be accounted for allotment in the private offering via the bookbuilding system. Meanwhile, allotment in the IPO is governed by EGX listing regulations. It is noteworthy that if the IPO gets oversubscribed, each buyer will get a ratio of the offered shares, and sums will be rounded in favor of small investors.
The IPO manager will define the method of paying for buy orders. The manager may exclude or allot shares to legal persons and individuals with strong financial solvency, without stating reasons. As for the private offering orders, brokerage firms will pay 25% of each order value by the end of Thursday’s working hours, setting EGP 6.06 per share as a maximum price.
MTI and the IPO manager may, in case the private offering was undersubscribed, allocate a portion of the offering to the IPO, on the condition of announcing the private offering’s volume and subscription ratio, three days prior to closing the IPO.
MTI Chairman has the sole right to extend the IPO to a maximum of ten days and a minimum of three working days after the closing date.
According to the IPO prospectus, Beltone, as the IPO manager, is accounted for establishing an account to maintain the share’s stability and trading price.
The account lasts for thirty days, starting from the beginning date of trading on MTI’s shares on EGX, noting that by the end of the account’s lifetime, all pending sellers’ requests will be put in action. In case selling requests exceed buy orders, requests shall be carried out in proportion to the buy orders based on the IPO price and sums will be rounded in favor of small investors.