Raya Holding for Financial Investments, a key player in the Egyptian investment landscape led by tycoon Medhat Khalil, has unveiled plans to initiate an initial public offering (IPO) for its IT subsidiary, Raya Information Technology, in the first half of 2024.
The decision to go public follows reports that Raya Information Technology is in advanced discussions to secure a $35.5-million medium-term syndicated loan. This strategic financing arrangement, structured as credit limits, will streamline the issuance of bank letters of guarantee, supporting the IT arm’s ambitious expansion plans.
Raya Information Technology sets stage for IPO, offering 30-35-percent stake to investors
Executives within Raya Holding emphasized that the IPO is designed to provide potential investors with an opportunity to acquire a stake in Raya Information Technology. The public offering will involve the sale of a stake ranging from 30 to 35 percent of the IT arm’s shares.
Established in 1999 through a merger between entities owned by Khalil and Orascom Group, Raya Holding has become a prominent player in the Egyptian investment landscape. Khalil maintains a commanding 58.1-percent majority stake in Raya Holding, boasting an impressive total of 1,245,661,205 shares.
Trading at EGP2.8 ($0.091) on the Egyptian Exchange as of this writing, Raya Holding boasts a market capitalization of EGP6 billion ($194 million). This translates to an estimated EGP3.5 billion ($113 million) market value for Khalil’s stake in the group.
Parallel strategic move: Ostool transport and logistics acquisition
In parallel with the IPO announcement, Raya Holding recently acquired a substantial 27.69-percent stake in Ostool Transport and Logistics Company. This acquisition, comprising 23.9 million shares, aligns with the group’s growth strategy in the Egyptian investment landscape.
Despite awaiting regulatory approvals for the transaction’s finalization, all parties involved express confidence in a swift and seamless completion of the deal. This move underscores Raya Holding’s commitment to expanding its influence in the dynamic logistics sector.