The IPO is the premiere listing of one of the largest Egyptian cosmeceutical players and EFG Hermes Investment Banking’s first Initial Public Offering of the year
EFG Hermes’ Investment Banking division, the leading investment banking franchise in Frontier Emerging Markets (FEM), announced today that it has successfully completed advisory on Macro Group Pharmaceuticals’ (Macro Group) EGP 1.3 billion initial public offering (IPO) on the Egyptian Exchange (EGX) – the first listing of a cosmeceutical player in Egypt.
The IPO consisted of a secondary sale of shares by Leo 1 (the “Selling Shareholder”) of up to 264,513,661 existing shares, representing up to 45.8% of the Company’s outstanding share capital listed on the EGX. The IPO included a private placement to certain qualified investors in Egypt and several countries, and a retail offering to retail investors in Egypt which were covered 1.79x and 102.2x, with Macro Group commencing trading today under the ticker MCRO.CA.
“We’re delighted to have advised Macro Group on its IPO and the first in the Egyptian cosmeceutical space. The IPO highlights the rapid expansion of the industry as well as the growing demand for high-quality, innovative cosmeceutical products driven among Macro Group’s growing customer base,” said Mostafa Gad, EFG Hermes’ Co-Head of Investment Banking. “As our first IPO of the year, this transaction only serves to highlight our ability to cater to our clients’ needs while capitalizing on our international investor base and connecting global capital with compelling emerging market opportunities.
Macro Group is one of the leaders in Egypt’s fast-growing cosmeceuticals space, with a market share of 23.1% recorded in 2020 in the therapeutic areas in which it operates, based on the 2020 IQVIA audit report. Macro Group is principally engaged in the manufacture and sale of cosmeceuticals and has recently ventured into nutraceutical products. While all of the Company’s products are available over-the-counter, Macro Group also utilizes a prescription-based sales strategy and generates demand through an incentivized medical salesforce that targets physicians and pharmacies nationwide.
EFG Hermes’ Investment Banking division acted as the sole global coordinator for the transaction, as well as joint bookrunner.
2021 was a milestone year for EFG Hermes’ Investment Banking team, with goals of utilizing that success to propel the division’s work into 2022. As part of its work over the past year, the division served as joint bookrunner on the USD 795 million listing of Fertiglobe on the ADX; joint bookrunner on the AED 4.0 billion listing of ADNOC Drilling on the ADX; joint bookrunner on the AED 2.7 billion listing of Yahsat on the ADX; sole financial advisor and joint bookrunner on Fawry’s EGP 1.2 billion follow-on sale on the EGX, and joint bookrunner and underwriter on Alkhorayef Water & Power Technologies’ USD 144 million IPO on Tadawul.