Ibnsina Pharma, a pharmaceutical distribution company operating in the Egyptian market, has started the initial public offerings (IPO) of a part of its shares on the Egyptian Exchange, equivalent to 25% of the company’s capital. It comes amid the company’s plan to attract new capital investments to develop its current business and finance planned expansions.
Ibnsina intends to issue new shares, while the current shareholders will also offer a number of existing shares for sale.
The company expects to complete the offering by the fourth quarter (Q4) of 2017 or Q1 of 2018 after meeting some of the regulatory requirements for obtaining the registration approvals from the Egyptian Exchange and the Egyptian Financial Supervisory Authority (EFSA) in accordance with the legal governing procedures.
Chairperson of Ibnsina Mohsen Mahgoub said that his company is the fastest growing Egyptian company and the second largest pharmaceutical distributor in the Egyptian market. The company distributes the products of more than 300 companies operating in the local and international pharmaceutical industry, serving 34,000 customers, including wholesalers, pharmacies, public and private hospitals, and clinics in all Egyptian governorates.
Ibnsina has the second largest pharmaceutical market share, reaching about 18.5%, while the company’s revenues are expected to exceed EGP 9.5bn in 2017. Since its establishment in 2001, Ibnsina has achieved the fastest growth rate in the pharmaceutical distribution sector in Egypt. The company’s revenues have grown at a compound annual growth rate (CAGR) of 30%, compared to 17% average market growth over the last five years.
The company is also looking forward to achieving high growth rates in 2017 thanks to the recent improvement of market conditions, especially after the application of some economic reforms that give pharmaceutical companies the right to determine the pricing of medicines.
Ibnsina’s shareholders include the European Bank for Reconstruction and Development (EBRD), which owns a 21% stake obtained through an initial and secondary purchase deal in 2015.
The shareholders also include Mahgoub (24% stake), Abduljawad (23%), Faisal Islamic Bank (16%), and other small shareholders including the management team (16% stake). Beltone Financial will take over the initial public offerings of the company’s shares, while Matouk Bassiouny, an independent law firm, will be the legal advisor to the company.