What:
The Claps team got their hands on a document by Zilla Capital teasing the upcoming IPO. They released some interesting figures about the upcoming IPO of Act Financial, expected this coming May.
Business model:
The document described some aspects of Act Financial’s model. They aim to generate value by investing in Egyptian businesses, then utilizing the extra funds injected to boost the business’s operation and market dominance, and to sharpen their management.
Then, they unload their stake. Their average holding period is 2 years.
Stand on the shoulders of others:
The document explained that being a part of a larger business consortium provides them with opportunities like investing beyond their normal capacity as an individual business.
Noteworthy investments:
- A minority stake in Beltone Financial from 2015 to 2019.
- A minority stake in CI Capital from 2019 to 2020
- A minority stake in “Heliopolis Housing” from 2020-2021
- Powered by their consortium, they acquired the largest single stake in SODIC from 2020 to 2021
- More than a 5% (Around 10%) stake in RAMEDA from 2020 to 2023
- More than a 5% (Around 9%) stake in Ezz steel, from 2021 till now. The company exited a part of the stake in 2023.
Financial performance:
According to the document, the company achieved a net profit of EGP 494 million in 2023, and expects to generate EGP 632 million and EGP 722 million in net profits for 2024 and 2025, respectively.
