The news
- Valu receives the green light from the Egyptian Exchange (EGX) for public listing.
- EFG Holding to distribute 20.488% of Valu shares to its shareholders.
- Valu raised $27 million from Saudi investors to bolster capital.
- The company aims to expand services and enhance digital offerings post-listing.
Egyptian fintech firm Valu has obtained approval from the Egyptian Exchange (EGX) to list its shares, marking a significant step towards becoming a publicly traded entity. This move is part of a broader strategy by its parent company, EFG Holding, to unlock value and provide shareholders with direct exposure to Valu’s growth.
As part of the listing process, EFG Holding will distribute 20.488% of Valu’s shares to its shareholders, replacing the traditional cash dividend for the 2024 fiscal year. This share distribution is contingent upon the completion of necessary regulatory approvals and registration with the Financial Regulatory Authority (FRA). Once trading commences, shareholders will have the opportunity to trade their allocated Valu shares on the EGX.
In a parallel development, Valu has successfully raised $27 million from Saudi investors, including the Saudi Investment Bank and Sanabil Investments. This capital injection is expected to strengthen Valu’s financial position and support its expansion plans.
Valu, known for its buy now, pay later (BNPL) services, has been a prominent player in Egypt’s consumer finance sector. The company recently obtained a fintech licence from the FRA, enabling it to offer a fully digital customer experience. This licence allows Valu to diversify its product offerings and enhance its digital capabilities.
EFG Hermes has been appointed as the financial advisor for the listing, with Zulficar & Partners Law Firm serving as the legal advisor. The listing is anticipated to provide Valu with increased visibility and access to capital markets, facilitating its growth and innovation in the fintech space.
EFG Holding will retain a majority stake in Valu post-listing, ensuring continued strategic alignment between the two entities. The move is seen as a testament to the confidence in Valu’s business model and its potential for sustained growth in the region’s fintech landscape.
The exact date for the commencement of trading will be announced following the completion of all regulatory requirements.
