The Egyptian government sold a 10% stake in Telecom Egypt (ETEL) for about EGP 3.95 billion, citing anonymous sources acquainted with the transaction, According to Asharq Business on May 12th.
The government sold more than 170.7 million shares at a price of EGP 23.11 per share, with the offering being subscribed by less than 2.5x, one of the sources said.
Large portion of the stake was purchased by local investors, while Arab and foreign investors just acquired a limited number of the offered shares.
The government is said to have offered some 170.7 mn shares for EGP 23.11 a piece — the same price at which TE’s share price closed on Thursday.
The sale was some 2.5x oversubscribed, according to local press reports. Bloomberg had reported last week that the shares would be sold at EGP 22.25 apiece — around a 4% discount to where shares were trading last week. If the reported figures are correct, the transaction will raise EGP 3.95 bn (c.USD 129 mn) for the government and value TE at around EGP 39.5 bn.
Telecom Egypt represents the long-awaited first step in the government’s initial public offerings (IPO) program.
Prior to the transaction, Telecom Egypt was 80%-owned by the government, while the remaining 20% of the company’s shares are being traded on the Egyptian Exchange (EGX).
