OG Capital opens EGP90mn private placement, but has yet to disclose acquisition targets as regulatory deadlines tighten.
CAIRO, Egypt’s OG Capital, controlled by businessman Ibrahim El Organi, has opened a EGP90 million private placement to meet capital requirements for its planned $500 million acquisition programme, as regulatory deadlines approach with no target company publicly identified.
The offering, managed by EFG Hermes, will issue 90 million shares at EGP1 each, raising issued capital from EGP10 million to EGP100 million. Subscription is restricted to qualified investors and financial institutions and closes on November 10, according to an information memorandum approved by Egypt’s Financial Regulatory Authority (FRA) on November 1.
The company is targeting hotels, automotive manufacturing and distribution, building materials and healthcare, with potential expansion into real estate and education.
The EGP90 million fundraising represents only a fraction of the proposed acquisition programme. Larger transactions would require additional financing or alternative structures, including mergers, credit-balance settlements and share exchanges that could dilute existing shareholders.
Regulatory timing presents the immediate challenge. OG Capital secured temporary Egyptian Exchange listing on May 19. Under standard SPAC rules, it was required to increase capital within three months and present an acquisition proposal for shareholder approval within six months — around August 19 and November 19, respectively.
The offering opened after the initial capital deadline. The FRA has approved the new information memorandum, but whether OG Capital secured extensions to the applicable deadlines has not been publicly established.
According to EnterpriseAM, Ibrahim El Organi owns nearly 90% of the company, while his son Essam El Din, its chief executive, holds approximately 10%, before the current offering.
The move comes as Egypt’s SPAC market develops. Catalyst Partners Middle East has completed acquisitions worth EGP2.8 billion through share exchanges, while Hassan Allam-backed Grova has also launched a EGP90 million placement.
OG Capital’s next test is execution: identifying viable acquisition targets, securing financing and obtaining shareholder approval within the applicable regulatory timetable. Until then, its $500 million objective remains an investment ambition rather than committed capital.
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