Wednesday June 08, 2022

Firm completes advisory ahead of IPO

Firm completes advisory ahead of IPO

The upcoming IPO marks a significant milestone for EFG Hermes.

Staff Reporter, Rlixa

EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced  that its Investment Banking division has successfully completed advisory on Ali Alghanim and Sons Automotive Company’s $323 million Private Placement ahead of the Initial Public Offering (IPO) on Boursa Kuwait.

The upcoming IPO marks a significant milestone for EFG Hermes, as this is going to be the Firm’s first IPO on the exchange where it acted as joint bookrunner for the offering.

Ali Alghanim and Sons Automotive Company, an official distributor of coveted vehicle brands in Kuwait, Egypt, and Iraq, listed 124.8 million shares today — representing 45% of its share capital — at a price of  793 Kuwaiti Fils per share, implying a market capitalization of $717 million and making it the First IPO in the Kuwaiti Stock Market Since 2020. The Private Placement ahead of the IPO garnered strong demand from investors, and was oversubscribed approximately 11 times with a total demand of more than c. USD 3 billion. The stock’s trading will commence on the 7th of June.

“The fact that our first listing in Kuwait will also be the first IPO to come out of the market since 2020 is proof positive of the traction we’ve built in the GCC and underscores our ability to bridge the gap between global capital and compelling local opportunities even amid challenging market conditions,” said Mohamed Abou Samra, Managing Director of EFG Hermes’ Investment Banking division.

“The GCC has seen fresh listings recently as countries in the region work to deepen their capital market under the umbrella of wider-scope economic reform plans. Kuwait in particular is expected to see renewed interest in the market, as evidenced by the solid demand from a multitude of local, regional, and global investors on the listing of Ali Alghanim and Sons Automotive. We expect to continue to capitalize on this uptick in activity, having already lined up several ECM transactions in the region in the year ahead.

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