The Egyptian fintech company, Fawry, has revealed plans to list in the United States through an SEC-registered secondary offering and also to raise its issued capital by EGP800 million ($50.9 million) in line with its expansion plans.
Fawry is one of Africa’s few tech unicorns, with a technology serving more than 250 e-payment services through its network of over 105,000 service points in 300 cities in Egypt.
Egyptian businessman Ashraf Sabry, who developed the payment platform in 2008 and championed electronic bill payments in Egypt, owns 2.345 percent of the firm.
In accordance with its intended listing in the United States, the board has decided to establish an American Depository Shares program, which is an equity share of a non-U.S. firm held by a U.S. depository bank and accessible for purchase by U.S. investors.
As part of the planned listing, Fawry seeks to increase its share capital by EGP800 million ($50.9 million) through a rights issue for present shareholders, from EGP853.65 million ($54.3 million) to EGP1.653 billion ($105.1 million).
The management believes the move will not only aid its development, but also allow it to extend its product offerings on MyFawry, implement its investment plan and assist the emerging startup and fintech ecosystem.
The move comes nearly three months after the platform announced the acquisition of a minority share in Alsoug, Sudan’s largest online ads marketplace.
This is Fawry’s first investment outside Egypt. It is the first foreign investment in the Sudanese tech industry in more than 25 years since the country was cut off from the international market.
As of press time on Jan. 22, the company’s shares were valued at EGP11.28 ($0.7183) per share, 3.42-percent less than their opening price on the Egyptian Stock Exchange on Jan. 21.
Fawry’s market capitalization is now around EGP19.26 billion ($1.23 billion), while Sabry’s 2.345-percent ownership stake in the fintech business is worth EGP451.6 million ($28.76 million).
