EFG Hermes Successfully Concludes Follow-on Sale of 126.2 Million Shares in Abu Qir Fertilizers in a USD 143 Million[1]Transaction
The transactionfalls under Egypt’s efforts to privatize state-owned companies, underscoring the Firm’s commitment to spur private investment in key sectors under the country’s economic development program
Cairo,9December 2021
EFG Hermes’ investment banking division, the leading investment banking franchise in Frontier Emerging Markets (FEM), announced today that itsuccessfully concluded advisory on the c. USD143 million follow-on sale transaction of up to c. 126.2 million sharesof Abu Qir Fertilizers and Chemical Industries Company (ABUK.CA) on the Egyptian Exchange (EGX), representing c.10% of the company’s share capital. The Firm acted as joint global coordinator and bookrunneron behalf of the selling shareholders: the National Investment Bank, Industrial Development Authority, AlAhly Capital Holding, and Chemical Industries Holding Company.
Mostafa Gad, Co-Head of Investment Banking at EFG Hermessaid: “Weare incredibly proud to be closing this deal today, which marks another milestone in our commitment to aid private sector investment in key state-owned assets as part of the country’s economic reform agenda. In 2019, we closed the EGP 1.7 billion sale of 4.5% in Eastern Company — a highly anticipated and maiden offering in the state’s privatization program. With international fertilizer prices on the rise and demand remaining strong, Abu Qir has managed to almost double its bottom line this year, signaling solid and sustained growth prospects for the company in Egypt’s strategic fertilizer space.”
Abu Qir Fertilizers and Chemicals Industries Company is the first and largest integrated nitrogen fertilizer producer in Egypt, with a sellable capacity of c.2.3mn tons per annum.The Company produces a wide variety of fertilizer products, including ammonia, urea, ammonium nitrate, urea ammonium nitrate and NPK fertilizer. Abu Qir is largelygovernment-owned; andwith this sale, Abu Qir becomes the second state-owned company to tap the bourse this year.
The deal marks EFG Hermes Investment Banking’s 12th ECM transaction this year alone, closing a total of 32 transactions worth USD c.7 billion between ECM, DCM, and M&A deals. Most recently, the division served as financial advisor to Egypt’s SODIC in its sale to an Aldar-ADQ consortium; joint bookrunner on the AED 4.0 billion listing of ADNOC Drilling on the ADX;joint bookrunner on the AED 2.7 billion listing of Yahsat on the ADX; and bookrunner and underwriter on Alkhorayef Water & Power Technologies’ USD 144 million IPO onTadawul.
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About EFG Hermes Holding
With a current footprint spanning thirteen countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) started in Egypt and has grown over 37 years of success to become auniversal bank in Egypt with a leading investment banking platform with access to emerging and frontier markets. Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research and private equity to the entire MENA region.
In 2015, EFG Hermes launched its Non-Bank Financial Institutions (NBFI) Platform, which overlooks activities in the non-banking finance field covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), mortgage and insurance. This falls in line with the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into non-MENA markets, which has seen the Firm establish a physical presence in Pakistan, Bangladesh, Vietnam, Kenya, Nigeria, the United Kingdom and the United States. In 2021, the firm acquired a controlling stake in aiBANK allowing the Firm to transform into a universal bank in Egypt.
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The EFG Hermes Public Relations Team
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Note on Forward-Looking Statements
In this press release, EFG Hermes may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes’ belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.
[1] At USD/EGP exchange rate of EGP 15.71
