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Hassan Allam engineers dual-listing
Posted on Tuesday, 09 October 2018 09:02
The Hassan Allam family and International Finance Corporation (IFC) are selling up to 44.3 per cent of Hassan Allam Holding via an initial public offering while the Egyptian construction group will separately hold a closed subscription worth USD 70.00 million. Proceeds from the capital increase will finance the development of a portfolio of solar assets under Lightsource BP powered by Hassan Allam utilities, and fund its water platform by establishing new projects and acquisitions. The money raised through a sale of new shares to the Hassan Allam family and IFC will bankroll the purchase of a speciality engineering company, as well as support continuing growth under the construction and building materials businesses. In terms of gaining entry to the capital markets, Hassan is aiming to hold an institutional offering to become admitted to the Egyptian Exchange and intends to issue global depository receipts to become listed in London. EFG Hermes and Renaissance Capital are acting as joint global coordinators, and together with Arqaam Capital are bookrunners for the proposed flotation. Hassan Allam is the oldest construction group in the Middle East and North Africa - having been in established in 1936 – and carries out infrastructure, industrial, and high-end commercial projects in Egypt and the region. During 2013 to 2017, the business has delivered over 71 developments worth more than EGP 15.50 billion and, as of 30th June 2018, has a backlog of EGP 55.80 billion. For the financial year ended 31st December 2017, Hassan Allam generated revenues of EGP 11.50 billion, earnings before interest, tax and depreciation (EBITDA) of EGP 976.40 million and a net profit of EGP 339.70 million. In H1 2018, the business recorded EBITDA of EGP 882.10 million on turnover of EGP 8.99 billion, booked EGP 427.4 million at its bottom line and had a ratio of 1.1x net debt to EBITDA, as of 30th June 2018. © Zephus Ltd