First trading day of Raya Contact Center Shares on the Egyptian Exchange

Cairo – (Masaader News)

Company will have a market capitalization of EGP 1,650million at the opening ceremony this morning at the EGX. Transaction is EFG Hermes’ fourth equity capital market transaction and second IPO to-date in 2017

EFG Hermes, the leading financial services corporation in the Middle East and North Africa (MENA), successfully concluded today its advisory on the EGP 808 million initial public offering of Raya Contact Center S.A.E., shares of which began trading this morning at 10:00am CLT on the Egyptian Exchange under the stock code RACC.CA, opening at EGP 16.50 per share.

Raya Contact Center’s market capitalization at the opening ceremony will stand at EGP 1,650 million (c. USD 92 million).

EFG Hermes was sole global coordinator and bookrunner for the transaction, the firm’s second IPO in 2017 following the USD 105 million initial public offering of ENBD Reit on the Nasdaq Dubai, for which EFG Hermes Investment Banking was joint global coordinator and joint bookrunner. In parallel, EFG Hermes is presently leading the initial public offering of Dubai International Financial Center-based ADES International Holding Ltd. on the London Stock Exchange as sole global coordinator and joint bookrunner. 

“We are delighted to have taken Raya Contact Center public, working closely with its management team as it forges ahead with plans to create superior risk-adjusted returns for their shareholders and grow the company’s suite of BPO services,” said Mostafa Gad, Co-Head of Investment Banking at EFG Hermes. “We are proud to have built a quality book of global institutional investors for RCC’s shares through our superiorreach and unrivaled track record in the local market. Strong institutional investor interest in Egyptian equities reflects the fundamental attractiveness of the macro themes driving growth in Egypt.”

“In a new step reflecting the success of the EGX’s management efforts in attracting new companies, the EGX trading platform has welcomed its third visitor this year, namely Raya Contact Centers; it is the highest value IPO compared to the previous two IPOs executed during the first four months of the year,” said Dr. Mohamed Omran, EGX Chairman. “The high momentum of the IPOs during the first four months of this year reflects the efforts of the EGX’s management in this regard. The value of the IPOs executed earlier this year amounted to EGP 1.5 billion and represent about 65% of the total value of the executed IPOs during 2016. The EGX concluded during the past year five IPOs of a value about EGP 2.3 billion.” 

Moreover, we expect the current pace of IPOs to continue during the yearwith seven companies working on completing the required documents in a step toward commencing their IPOs and trading,” added Omran.

RCC offered for sale 48,994,000 existing ordinary shares, placed by EFG Hermes after a book-building process that saw the selling shareholder Raya Holding for Financial Investments offer 44,094,600 shares to international institutional investors and a further 4,899,400 shares to retail investors.

In total, the offering was 4.6x oversubscribed, with the institutional offering c.4.0x oversubscribed and the Egyptian retail offering 10.4x oversubscribed. International investors constituted the majority of orders for the institutional offering, demonstrating strong appetite for an industry-leading business with majority foreign-currency revenues from operations in Egypt, the United Arab Emirates and Poland that offer services in more than 25 languages, processing an average of 8.0 milliontransactions per month.

“To become a public company with investments from both Egyptian and international institutional and individual investors not only falls under our strategy to create superior, sustainable value through the growth of our existing operations, but to live up to the trust that has been placed in us by our shareholdersAs we take our first steps this morning as an EGX listed company, we appreciate the effort exerted by the EFG HermesZakiHashem & Partners, E&Y and Grant Thornton teamsWe look forward in the coming years to continue growing our company and maximizing value for our shareholders, said RCC Chief Executive Officer Ahmed Imam.

Raya Holding for Financial Investments will receive all of the gross proceeds from the Combined Offer. Following completion of the Combined Offer, Raya Contact Center will offer to the Selling Shareholder by way of a closed subscription (the “Closed Subscription”) the right to subscribe for shares valued at EGP 100 million at an Offer Price of EGP 16.50, the same price at which both international institutional investors and retail investors subscribed to the Combined Offering. At the Offer Price, the Company’s market capitalization is EGP 1.65 billion (c. USD 92 million) prior to the execution of the Closed Subscription. 

Raya Contact Center, which has more than 4,800 workstations across eight facilities in three countries, will use the funds received from the Selling Shareholder via the Closed Subscription to drive growth as it continues its transformation into a multinational service provider. Following the completion of the Combined Offering and the Closed Subscription, the Company expects to have a free float of 46.19%, assuming no stabilizing purchases are made by the stabilizing manager and no shares are returned to the selling shareholders at the end of the stabilization period.

The Raya Contact Center and ENBD Reit are two high-profile transactions in a busy first half that also saw EFG Hermes serve as sell-side advisor and joint bookrunner on the USD 120 million accelerated sale of 10% of Kuwait’s HumanSoft. In parallel, EFG Hermes is presently leading the initial public offering of Dubai International Financial Center-based ADES International Holding Ltd. on the London Stock Exchange as sole global coordinator and joint bookrunner. The firm also co-managed an accelerated bookbuilding process for the sale of emerging markets private equity player Actis’ final 7.5% shareholding in Edita for Food Industries, Egypt’s largest snack foods company. 

Dechert LLP was international counsel to Raya Contact Center on the IPOwhile Zaki Hashem and Partners was local counsel to the issuer and Matouk Bassiouny served as local counsel to the sole global coordinator and bookrunner.

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