Arab Finance: The retail tranche of MNT-Halan’s initial public offering (IPO) attracted orders for approximately 128.81 million shares on its third day, covering the 48 million shares available to individual investors about 2.68 times.
The offering comprises 320 million shares, equivalent to 20% of its total share capital of 1.6 billion shares, at an offering price of EGP 24.50 per share. The sale represents 20% of the company’s share capital and has a total value of EGP 7.84 billion, implying a company valuation of EGP 39.2 billion, or approximately $750 million.
Individual investors have been allocated 15% of the offering, equivalent to 3% of the company’s shares. The private placement comprises up to 272 million shares, accounting for the remaining 85% of the offering and 17% of the company’s share capital.
Retail subscriptions remain open until October 15, with a minimum order of 100 shares. The private placement closes on October 13, with minimum subscriptions of EGP 10 million for institutions and EGP 5 million for high-net-worth individuals.
The prospectus provides for the private placement to increase by up to 80 million additional shares. If fully exercised, this would bring the total offering to 400 million shares, representing 25% of the company’s share capital, and raise the transaction’s value to EGP 9.8 billion.
London-based asset manager Redwheel has committed approximately $20 million, equivalent to about EGP 1.05 billion, to the offering, alongside a commitment of up to EGP 2 billion from Commercial International Bank (CIB). Together, the two investors could account for approximately 39% of the base offering’s value.
Trading on the Egyptian Exchange (EGX) is expected to begin on October 20 under the ticker HALN, according to Mounir Nakhla, MNT-Halan’s founder and CEO. The listing aims to broaden the company’s investor base and make its shares available for trading on the EGX. MNT-Halan provides digital financial solutions, including financing services.
Meanwhile, Cairo-based brokerage Al Ahly Pharos sees potential for the shares to reach EGP 36.75 within 12 months, approximately 50% above the offering price. Its projection assumes the valuation multiple remains unchanged and excludes any additional market revaluation.
The brokerage’s outlook rests on expectations of approximately 50% growth in net profit in 2027, supported by greater lending capacity and a decline in operating expenses as a share of revenue.
