Rameda to breathe life into Egyptian IPO market
Egypt’s equity market has been slow to recover to pre-revolution levels, but liquidity is returning and companies are lining up to list.
Cairo-based Rameda Pharmaceuticals is set to price Egypt’s second private-sector initial public offering (IPO) of the year, revitalizing the country’s lacklustre IPO market, which has struggled to recover to pre-revolution levels, despite a healthy pipeline of state and non-state run companies.
Rameda is in the marketing phase of a listing that will value the company in a range of $214 million to $286 million on the Egyptian Exchange (EGX). It could be the largest Egyptian IPO since 2015.
Egyptian ECM activity has been slow to pick up after index-provider MSCI cut the North African country’s weighting in May 2015, in the aftermath of the Arab Spring, prompting investors to withdraw funds.
A successful deal would be a positive signal for investors, and good news for the large IMF-backed privatization programme that is yet to begin in earnest.