MTI seeks to inject EGP 1 bln investments within 18 months

The Chairman of MM Group for Industry and International Trade (MTI), Khaled Mahmoud, has announced that the company targets injecting around EGP 1 billion worth of investments in three key sectors within the next 18 months.

He explained that MTI seeks boosting its stake in SADAD Payment System, which the owner of 32% stake in Masary. The company’s 2016 revenues hit EGP 2.6 billion.

In addition, MTI targets entering new industries, such as microfinancing and consumer finance in the upcoming period, added Mahmoud.

He noted that MTI has ample liquidity to finance expansions. As of December 2016, liquidity reached EGP 1 billion. It is noteworthy that MTI is not loaded with any debts and achieved EGP 426 million worth of operating profits by the end of 2016.

MTI has announced that the final share price was set at EGP 5.96 and the private offering was covered 9.23 times.

Yesterday, trading screens of the Egyptian Exchange (EGX) have recorded buy orders of 6.9 million shares, which is 39.1% stake of the initial public offering (IPO) of MTI, which extends till Thursday. The IPO constitutes 15% of the total offering, 4.5% of the company’s shares, which is around 17.8 million shares.

As for the private offering, it constitutes around 85% of MTI’s floated shares, 100.9 million shares, which is 25.5% of the company’s shares. The final price will be defined after closing the private offering on April 4, which is three days before closing the IPO, which will be closed on April 6.

The IPO is planned to be covered at least four times.

The stock stability account is limited to the IPO subscribers, representing about 4.5% of MTI’s shares. The purchase price is set at the offering price and accounts are to be opened in the Arab African International Bank (AAIB).