Egypt’s Rameda Pharmaceutical to float 49% stake on EGX

Traders work at the Egyptian stock exchange in Cairo, Egypt September 23, 2019. REUTERS/Mohamed Abd El Ghany/File Photo

CAIRO (Reuters) – Egypt’s Rameda Pharmaceutical is planning to float 49% of its shares on the Egyptian stock exchange and expects to start trading on Dec. 11, it said on Wednesday.

Rameda hopes to raise 1.755 billion Egyptian pounds ($109 million) in the share offer, which will be made in two tranches priced at 4.66 pounds per share, it said in a prospectus published in Egyptian newspapers.

One tranche, representing a 5% stake, will be sold to small investors in a public offering, and the remainder sold in a private offering. A company official told Reuters that the public offering would begin on Thursday and last for five days.

Rameda was established by a group of Gulf investors in 1994 and manufactures and sells a wide range of branded generic pharmaceutical products, exporting to six countries, according to its website.

The group’s three factories in Cairo’s 6th of October industrial zone house 20 production lines, and it marketed 97 products as of 2018. Last year its revenues reached 805 million pounds.

It plans to use proceeds from the flotation to expand its product range and potentially acquire other pharmaceutical companies, it said last month when it announced its intention to float.

($1 = 16.0600 Egyptian pounds)

Reporting by Ehab Farouk; Writing by Aidan Lewis; Editing by Louise Heavens and Jan Harvey

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