Egypt’s fintech company, Fawry, has announced its plans to raise $50.8 million (EGP 800 million) of growth capital through a rights issue to existing shareholders.
The investment will be leveraged by Fawry to fund a new chapter of expansion in financial services for both consumers and merchants, boost its offerings on MyFawry, one of the company’s products and position it at the forefront of the Super App opportunity in Egypt.
Fawry will continue to invest in strengthening its position on merchant acquiring as well as supply chain solutions. A portion of the proceeds will also be directed towards executing the Company’s investment strategy, fast-tracking innovation and supporting the budding ecosystem of high-growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insurtech among other verticals.
Fawry’s board of directors, including the directors representing the main shareholders of the Company (whether representing institutional investors or financial institutions), have approved the proposal to increase the capital to finance the company’s growth plans if the necessary shareholder and regulatory approvals are obtained.
The board of directors also approved the creation of an American Depositary Shares (“ADS”) programme and is exploring a listing in the United States in connection with a potential SEC-registered secondary offering.
The timing, number of ADSs and price of the proposed offering have not yet been determined. The proposed offering is subject to market conditions, shareholder and regulatory approvals and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering.
These materials are not an offer for the sale of any securities in the United States. The securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.
Any public offering of securities will be made using a prospectus that may be obtained from the company and that will contain detailed information about the company and management, as well as financial statements.