EFG Hermes concludes ASAI stake sale advisory

Egyptian Financial Group Hermes (EFG Hermes) on Friday announced the conclusion of a GBP 125 million ($164.1 million) initial public offering (IPO) for international microfinance lender ASA International (ASAI) on the London Stock Exchange (LSE).

The offering saw ASAI’s shareholder Catalyst Microfinance Investors (CMI), offering 40 million shares, or 40% of ASAI to institutional investors, at GBP 3.13 ($4.11).

Accordingly, ASAI’s total market capitalization at Friday’s admission was GBP 313 million ($410.6 million).

The Egyptian investment bank acted as a joint bookrunner on the transaction with Investec, while Citigroup Global Market was the only global coordinator, with the lead management of Keefe, Bruyette & Woods (KBW).

“This is a milestone transaction for EFG Hermes and one that marks the firm’s first investment banking foray in frontier markets following the launch of our frontier strategy in early 2017” London-based EFG Hermes Frontier’s CEO Ali Khalpey said.

Moreover, EFG Hermes in 18 month entered three frontier markets, building distribution and sales capabilities in New York, London, Pakistan, Kenya, and Bangladesh, to cover 95% of the MSCI Emerging & Frontier Markets Index, Khalpey added.

EFG Hermes started executing its frontier expansion strategy in early 2017, as it was establishing offices in Pakistan, Kenya, and Bangladesh

In addition, it has acquired an FCA license to operate in the UK.

These expansions have enabled the firm to provide a comprehensive range of research, brokerage, and investment banking services to a wider base of domestic and international clients.