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EFG Holding has announced that its Board of Directors has approved the listing of U Consumer Finance (known as Valu) on the Egyptian Exchange (EGX).
As part of the process, the company will distribute shares in Valu to its shareholders instead of cash dividends, preparing the fintech giant for its debut on the stock exchange.
Valu, a leader in Egypt’s consumer finance sector with a 24 per cent market share, has facilitated 7.8 million transactions and recently obtained a fintech license from Egypt’s Financial Regulatory Authority (FRA).
The license will allow Valu to offer an end-to-end digital customer journey, enhancing its ability to provide innovative financial solutions.
In line with the listing plans, EFG Holding will distribute shares in Valu, equivalent to a 20.488 per cent stake in the company, to its shareholders based on the book value of the shares.
The distribution will occur once necessary regulatory approvals and registration with the FRA are completed, and shareholders will be able to trade their shares on the EGX once trading begins.
A pivotal step for Valu
In this context, Karim Awad, group CEO of EFG Holding, remarked, “This pivotal step is designed to maximise returns for our investors while fostering the sustainable growth of Valu, which is poised to emerge as an independent, listed entity with EFG Holding retaining a majority stake. This initiative not only adds immediate value for investors but also grants them a unique opportunity to engage directly in the future growth of a company that has transformed consumer finance in the Egyptian market, setting a transparent benchmark for Valu’s evaluation that is expected to surpass prior analyst valuations. By distributing part of Valu’s shares, we are establishing a new and innovative standard for offering shares in subsidiaries, enhancing liquidity, and expanding our investor base.
“Valu, built on the solid foundation of EFG Holding’s support, has achieved remarkable milestones, and we take immense pride in its journey thus far. We eagerly anticipate a future characterised by continued progress and prosperity in the next phases of growth. I would also like to extend my gratitude to the team at the FRA, particularly chairman Dr Mohamed Farid, for their invaluable support throughout this process — an essential factor in the efficient and seamless execution of this innovative model.”
Walid Hassouna, CEO of Valu, remarked that the company is poised to further its role as a key player in Egypt’s fintech sector. “Valu proudly embraces this innovative listing, which signifies a pivotal moment in our journey. The name Valu has become synonymous with the ‘Buy-Now, Pay-Later’ model in Egypt, reflecting our role as a powerful force in the fintech sector and establishing our brand as a hallmark of accessible financial solutions.”
EFG Hermes named financial advisor on listing
EFG Holding and Valu have appointed EFG Hermes as the financial advisor for the listing, with Zulficar & Partners Law Firm serving as the legal advisor.
FG Holding and U Consumer Finance have appointed EFG Hermes Promoting and Underwriting as the sole financial advisor and manager of the EGX listing and trading process, along with Zulficar & Partners Law Firm serving as legal advisor on the listing and trading process.
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