👨🏿🚀TechCabal Daily – Egypt makes room for MNT-Halan
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Egypt's stock market is experiencing an unusual situation due to the highly anticipated IPO of MNT-Halan, a leading fintech company. The initial public offering (IPO) is generating a unique challenge: investors require funds to purchase the shares, leading some to sell their existing stocks. This has resulted in a situation where investors are unable to determine whether this is a positive or negative development.
MNT-Halan, a prominent Egyptian fintech unicorn, saw its retail offer oversubscribed by 13.5 times before the final trading session. The demand for these shares exceeded the available supply, with orders worth EGP 15.9 billion ($304 million) chasing only EGP 1.18 billion ($22.5 million) worth of shares. The institutional offer had already surpassed 11.2 times oversubscription.
MNT-Halan plans to sell 320 million existing shares, which make up approximately 20% of its Egyptian business. These shares will be offered at EGP 24.50 ($0.47) each, with the expected proceeds amounting to around EGP 7.84 billion ($150 million) for the company. The IPO is set to begin trading on October 20.
However, Egypt's stock market already faces difficulties, and the influx of funds from MNT-Halan's IPO may further complicate the situation.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
