CAIRO — MNT-Halan opened subscriptions on Wednesday for the Egyptian Exchange flotation of its Egyptian operations, launching an EGP7.84 billion ($149–150 million) transaction backed by major institutional commitments but with first-day subscription coverage yet to be disclosed.
The Egyptian Exchange opened its special-transactions market on October 7 for orders in MNT Tech Holding for Financial Investments, MNT-Halan’s Egyptian operating arm. The base offer covers 320 million existing shares at EGP24.50 each, equivalent to 20% of the company’s 1.6 billion shares.
At the offer price, MNT Tech carries an implied equity value of approximately EGP39.2 billion, or around $750 million. Independent financial adviser BDO Keys assessed fair value at EGP25.92 per share, putting the offer price about 5.5% below that benchmark.
The valuation applies specifically to MNT-Halan’s Egyptian operations, rather than the wider international MNT-Halan group. The distinction is material when comparing the listed company’s valuation with previous private valuations assigned to the broader group.
Parent Sells Shares, Then Reinvests in Egypt
The transaction is structured initially as a secondary offering, rather than a direct issuance of new shares by MNT Tech.
The IPO is initially a secondary sale by parent MNT Investments B.V., which will receive the EGP7.84 billion proceeds from selling existing MNT Tech shares. The parent then plans to reinvest up to EGP4 billion into the Egyptian company through a separate capital increase, leaving it in control while directing more than half of the base offer proceeds back into Egypt.
The structure therefore combines partial monetisation of the parent’s existing investment with fresh equity for the Egyptian operation. Founder and chief executive Mounir Nakhla has indicated that the remaining proceeds could support MNT-Halan’s Turkish operations and further expansion in an Arabic-speaking market.
Nakhla has also said no shareholder in the wider parent group is making a full exit. Existing MNT Tech shares are nevertheless being sold by MNT Investments B.V., which will retain control following the flotation.
Institutional Investors Anchor the Offer
The base transaction comprises 48 million shares for the public offering and 272 million shares for institutional and qualified investors. Retail subscriptions run through October 15, while the institutional tranche closes on October 13.
The private placement may also be increased by up to 80 million shares, subject to Financial Regulatory Authority approval and demand. A full increase would raise the offer to 400 million shares, or 25% of MNT Tech, worth EGP9.8 billion at the fixed EGP24.50 offer price.
Institutional support was secured before subscriptions opened. Commercial International Bank has committed up to EGP2 billion, while London-based asset manager Redwheel has committed around $20 million. At their maximum disclosed commitments, the two cornerstone investors represent up to approximately 39% of the base offering.
First Day: Launch Confirmed, Coverage Still Undisclosed
By the close of the first subscription day on October 7, no verified public coverage multiple had been disclosed for either the retail or institutional tranche.
That prevents the first session from yet being characterised as oversubscribed or strongly subscribed beyond the already disclosed cornerstone commitments.
Under the offer rules, the manager may announce once during the subscription period when an offer reaches 100% coverage, while the final coverage ratio is announced only after notification to the FRA.
The first day’s confirmed achievement is therefore the formal launch of the full EGP 7.84 billion transaction on schedule, supported at entry by substantial cornerstone commitments. The next material demand signal will be confirmation that either tranche has reached full coverage, followed by the final subscription multiple and allocations.
The offer is already the largest Egyptian Exchange flotation by nominal pound value in recent years, exceeding e-Finance’s EGP5.84 billion 2021 offering. In dollar terms, it would be the largest EGX IPO since e-Finance’s debut.
A Test for Egypt’s Private-Sector IPO Market
MNT-Halan has developed into a diversified non-bank financial-services group spanning microfinance, SME and consumer lending, payments, digital wallets and investment services. MNT Tech was temporarily admitted to the EGX main market in September under ticker HALN.CA, with 1.6 billion shares and issued capital of EGP160 million.
Management expects trading to begin on October 20, although the date remains subject to formal EGX confirmation following completion and allocation of the offering.
The transaction carries wider significance for Egypt’s capital market because it brings a sizable privately developed growth business to an IPO pipeline that has recently depended heavily on state-related offerings.
The immediate test is now subscription demand. Strong final coverage—particularly from international institutions—would demonstrate the EGX’s capacity to absorb a large private-sector issue, establish a public valuation benchmark for Egypt’s expanding non-bank financial sector and strengthen the case for a broader pipeline of privately owned companies to follow.
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