Ibnsina Pharma, one of Egypt’s larg- est drug distributors, has set the final price of its initial public offering (IPO) on the Egyptian Exchange (EGX) at EGP 5.8 per share for institutions and individuals to sell 229 million shares.
The IPO has been oversubscribed 17.1 times through more than 500 in- stitutions and individuals, the company stated in a press conference on Tuesday.
The company’s trading on EGX is due 12 December, and with a market capitalisation of up to EGP 3.9 billion, the firm noted.
The company pointed out that sub- scription will end 7 December.
It is worth mentioning that the OPR market took place last Tuesday to receive Ibnsina’s IPO subscriptions until 7 December.
Ibnsina will sell 40.4 million shares of the IPO at a minimum of 100 shares and a maximum of 900,000 shares, the company officials highlighted.
Omar Abd ElGawad, founding part- ner and chief executive officer at Ibn- sina Pharma, said that the drug market has developed recently because of the rising population and the emergence of new chronic diseases which led to an increase in sales.
“Our future investment plan tar- gets pumping about EGP 700m, in the coming five years, to increase the company’s market share from 18.8% to
26% through adding 22 logistics ware- houses,” he revealed.
The company will fund the invest- ment plan through increasing capital by EGP 270m and the rest will be funded through loans and retained earnings.
“The company’s vision includes ex- pansion outside Egypt after earning an exporting license last month, but for the medium-term, our focus is the lo- cal market,” he added.
Mostapha Abd ElAziz, chief of securities sector at Beltone Financial, which is managing Ibnsina’s IPO on the EGX, as- serted that the it succeeded due to the great marketing efforts, in addition to the stable situation of the drug market.
The purchase orders’ value was about EGP 22.5bn, he added.
He revealed that the company has received about 500 orders, 200 of them from institutions and economic entities. As for the nationalities that ap- plied, 45% were Egyptian, 11% Saudi Arabian, 6% from the United States,
7% Europen, and 13% South African. Mahmoud Abd ElGawad, founding partner and chief executive officer at Ibnsina Pharma, revealed that the com- pany’s market share stands at EGP 10bn which represents about 18.8% of the total market.
He assured that Ibnsina Pharma has the second biggest share of the Egyp- tian market in the industry. They have about 9, 500 product types in their stores, he revealed.