EFG Hermes completes advisory on USD 323 mn Private Placement ahead of the IPO of Ali Alghanim and Sons Automotive Company on Boursa Kuwait—which Marks the First IPO in the Kuwaiti Stock Market Since 2020

EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced today that its Investment Banking division has successfully completed advisory on Ali Alghanim and Sons Automotive Company’s USD 323 million Private Placement ahead of the Initial Public Offering (IPO) on Boursa Kuwait. The upcoming IPO marks a significant milestone for EFG Hermes, as this is going to be the Firm’s first IPO on the exchange where it acted as joint bookrunner for the offering. 

Ali Alghanim and Sons Automotive Company, an official distributor of coveted vehicle brands in Kuwait, Egypt, and Iraq, listed 124.8 million shares today — representing 45% of its share capital — at a price of 793 Kuwaiti Fils per share, implying a market capitalization of USD 717 million and making it the First IPO in the Kuwaiti Stock Market Since 2020. The Private Placement ahead of the IPO garnered strong demand from investors, and was oversubscribed approximately 11 times with a total demand of more than c. USD 3 billion. The stock’s trading will commence on the 7th of June.

“The fact that our first listing in Kuwait will also be the first IPO to come out of the market since 2020 is proof positive of the traction we’ve built in the GCC and underscores our ability to bridge the gap between global capital and compelling local opportunities even amid challenging market conditions,” said Mohamed Abou Samra, Managing Director of EFG Hermes’ Investment Banking division. “The GCC has seen fresh listings recently as countries in the region work to deepen their capital market under the umbrella of wider-scope economic reform plans. Kuwait in particular is expected to see renewed interest in the market, as evidenced by the solid demand from a multitude of local, regional, and global investors on the listing of Ali Alghanim and Sons Automotive. We expect to continue to capitalize on this uptick in activity, having already lined up several ECM transactions in the region in the year ahead.

Companies in the GCC have raised over USD 22 billion in primary and secondary offers in the past 12 months. The entry of Kuwait in the key emerging market indices in 2019-20 means that the market is now on the radar of fund managers investing hundreds of billions of dollars. Recently, EFG Hermes’ Investment Banking team have succeeded in identifying and closing successful cross-border transactions in the GCC, such as the UAE-based Agthia Group’s acquisition of Kuwait’s Al Faysal Bakery and Sweets that they completed last year.

The listing is an integral step towards institutionalization and aims to diversify the shareholder base, enhance corporate governance, and broaden Ali Alghanim and Sons Automotive network and visibility among key stakeholders. With distribution spanning Kuwait, Egypt, and Iraq, it offers investors access to a large and growing automotive market in the region.

Established in 1986, Ali Alghanim and Sons Automotive Company is a pioneer in the automotive sector and has grown to become home to some of the world’s most luxurious automotive brands in Kuwait. Its facility extends over 22,000 square meters of land, and it operates one of the largest showrooms in the world.

Just this year, EFG Hermes’s investment banking team advised on Borouge plc’s IPO worth USD 2 billion, and Dewa’s IPO, the largest ever in Dubai at a value of USD 6.1 billion. In 2021, it closed 41 ECM, DCM, and M&A transactions, with an aggregate value of over USD 7.9 billion, throughout its footprint and garnered numerous accolades as a result, including ‘Best Investment Bank in Frontier Markets’, ‘Best Debt Bank in Africa by Global Finance’, ‘Best Corporate and Investment Bank in Egypt’ by Asiamoney, as well as ‘Best Investment Bank in Egypt’ and ‘Best Equity House in the UAE’ by EMEA Finance.

About EFG Hermes Holding

With a current footprint spanning 13 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD)a has grown over 38 years of success to transform from a pure-play investment bank in MENA into an impact-driven universal bank in Egypt with the leading investment bank franchise in Frontier Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research and private equity to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform with operations covering microfinance, leasing, factoring, Buy-Now, Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.

Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes.

Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam