Cars pass through a downtown street off Taalat Harb Square in downtown Cairo, Egypt. Photographer: VICTORIA HAZOU/Bloomberg
Egypt’s biggest garment exporter, Giza Spinning & Weaving, plans to sell as much as 40 percent of the company in an initial public offering to help finance its expansion plans.
The Cairo-based company will list the shares on the local stock exchange in November and will use some of the proceeds to finance the 250-million Egyptian pound ($14 million) expansion of its garments and yarn production, co-Chief Executive Officer Fadel Marzouk said in an interview.
“The momentum is there and exports are rising year on year, so it’s the right time to expand and grow our business and get investors into the company,” Marzouk said. “Locally, the market grew a lot after the currency float as consumers shift to local products and imports fall.”
Egypt may have its busiest year for IPOs since the 2011 uprising that ousted President Hosni Mubarak as companies take advantage of inflows to the stock exchange. Growing confidence in economic policies introduced since the currency float in 2016 has boosted the stock market and is prompting companies to consider sales.
Giza Spinning will start a roadshow for the IPO in October and will visit the U.S., Europe, South Africa and Gulf countries, he said. Beltone Financial is global coordinator and bookrunner for the offering.
Founded in 1979, Giza Spinning is a family-owned business that is currently the biggest garments exporter by volume and the sixth biggest by dollar value. The company is also the second-biggest exporter of yarn by dollar value and has dyeing, printing and fabric production operations.
The CEO also said:
83 percent of 2017 revenue came from exports, mainly to the U.S. and Europe The company is targets 2 billion pounds of sales this year, of which 1.35 billion pounds will come from ready made garments and 500 million pounds from yarn The company opened the first phase of new garment plant in Upper Egypt in May; production capacity to reach 1.4 million pieces/month by end of 2020 Company plans to increase capacity of yarn plant by 50 percent in 2019; increase retail outlets to 80
Copyright: UMS International Fz LLCTheme