MNT-Halan, the notable Egyptian fintech enterprise established by Mounir Nakhla, has commenced its subscription process for the initial public offering (IPO) of its Egyptian segment. This IPO is aimed at raising 7.84 billion Egyptian pounds, roughly equivalent to $150 million, and marks the largest IPO in dollar terms in Egypt since 2021.
MNT Tech Holding’s Share Offering
MNT Tech Holding for Financial Investments is set to offer 320 million existing shares, which accounts for 20% of the company’s total, at a fixed price of 24.5 pounds per share. This pricing establishes the valuation of the Egyptian operations at approximately 39.2 billion pounds, or around $750 million. An independent valuation by BDO Keys has determined a fair price of 25.92 pounds per share, suggesting that MNT-Halan’s offering is positioned around 5.5% lower than this assessed value.
The public offering encompasses 48 million shares and is open until October 15, while a private placement of 272 million shares will wrap up on October 13. Depending on market demand, there is potential for an additional 80 million shares to be made available. Nakhla anticipates that trading of the shares will commence on October 20.
Key Financial Backers
One significant cornerstone investor in this IPO is Commercial International Bank, Egypt’s largest private lender, which has pledged up to 2 billion pounds. Alongside London-based firm Redwheel, cornerstone investors have collectively committed to more than one-third of the offering’s base capital.
The IPO concerns the sale of existing shares managed by MNT Investments, which will directly benefit from the proceeds. Following the IPO, the parent company intends to reinvest as much as 4 billion pounds back into its Egyptian operations by purchasing new shares at the established offer price. According to Nakhla, any remaining funds could be directed toward enhancing the company’s activities in Turkey and pursuing opportunities in other Arabic-speaking regions.
Financial Performance and Future Prospects
In financial performance metrics, the Egyptian operation projected an adjusted revenue of approximately 20.5 billion pounds and a net income of 1.98 billion pounds for 2025. Its portfolio includes diverse services, ranging from consumer and business loans to payment solutions, digital wallets, and investment opportunities.
This IPO surpasses the previously recorded 5.84 billion pound IPO from e-Finance in 2021 when evaluated in local currency. Investors will closely monitor retail demand for MNT-Halan’s shares, as this could influence the potential for more private companies in Egypt to consider going public in the future.
Overall, MNT-Halan’s IPO represents a significant milestone for both the company and the Egyptian financial market, reflecting increasing investor confidence and the potential for continued growth in the fintech sector.