MNT-Halan Prices Its Offering at EGP 24.50, Trading Starts October 20

MNT-Halan set the price for its initial public offering on the Egyptian Exchange at EGP 24.50 per share, in the largest IPO the Egyptian market has seen since 2021.

The offering values the listed entity MNT Tech Holding at approximately EGP 39.2 billion, equivalent to $750 million, which is about 5.5% below the fair value estimated by the company.

The base offering includes 320 million secondary shares representing 20% of the company, valued at nearly EGP 7.84 billion, or about $150 million. Commercial International Bank (CIB) and Redwheel participated as anchor investors, and trading is expected to begin on October 20.

The company intends to reinvest at least half of the proceeds into the parent company through a capital increase worth up to EGP 4 billion, while the remainder will be directed toward expansion in Turkey and an undisclosed acquisition.

What do these terms mean?

Initial Public Offering (IPO): A process in which a company offers its shares for sale to investors on the stock market for the first time, transferring its ownership to the general public of investors.

Anchor Investor: A large investor who buys shares during an offering to demonstrate confidence in it and attract other investors.

Secondary Shares: Shares sold by existing shareholders in the company as part of the offering, as opposed to new shares whose proceeds go to the company itself.