Today’s Trading Playbook
KEY THEMES
A “hot issue” is a newly-issued stock that is in great public demand, but when it comes to e-finance [EFIH], it is apparently the “hottest” issue that the Egyptian market has seen, albeit in EGP terms. With EFIH’s IPO covered multiple times, we thought it would be interesting to take a closer look at the recent IPOs in Egypt in the past 70 months, i.e. from 2016 (the year of the EGP flotation) to-date. We note the following interesting facts:
For the market:
* IPO size has averaged EGP1.4bn or USD89mn per issue.
* The public tranche averaged 12%, while the private placement tranche averaged 88%.
* The public tranche coverage averaged 28.4x, while the private placement tranche coverage averaged 9.5x, implying a combined weighted average coverage ratio of 11.1x.
* Total demand for IPOs has averaged EGP14bn or USD864mn per issue.
For EFIH:
* EFIH is the largest IPO in EGP terms (but not in USD terms due to the EGP flotation).
* EFIH’s public tranche coverage ratio of 61.4x is the second highest behind B Investments Holding’s [BINV] 84x.
* Total demand for EFIH surpassed all other IPOs by far with around EGP59bn or USD3.8bn.
* Both demand for EFIH’s public and private placement tranches are the highest with EGP22bn and EGP37bn, respectively.
With trading on its shares set to commence tomorrow, EFIH looks to be Egypt’s “hottest” issue so far. It only remains to be seen how it will perform in the coming few weeks and months.
Now, on to the top news and analysis for the day.