Today’s Trading Playbook
KEY THEMES
Just yesterday, the IPO price for e-finance [EFIH] was determined at EGP13.98/share, valuing EFIH at EGP24.8bn post-capital increase (i.e. 5% below FWRY’s market cap). The retail offering is set to conclude on 17 October 2021, where trading commencement to take place on 20 October 2021. The IPO has witnessed upsizing the total shares’ offered to include 23.5% of EFIH’s total outstanding shares from the originally-planned 14.5% due to strong institutional demand.
Now, the obvious valuation disparity we’re seeing here between the only two pure listed fintech players could be the product of number of reasons. Such reasons disparity could be attributed to: (1) Despite belonging to the same sub sector, the two entities hardly serve the same segment, (2) Valuation disparity could be because growth is contrast in the two key segments which EFIH and FWRY currently operate, and (3) FWRY itself could still be pricey, in which case EFIH’s valuation is an attempt to rationalize valuation in the fintech space.
Regardless of what reason contributed to the aforementioned observations, the existence of another major fintech player, let alone state-owned, should provide great optionality to investors that they have been missing before. Stay tuned for our pre-IPO note to be published later today.
Now, on to the top news and analysis for the day.