OCI targets up to $240m in listing

22 February 2015

Orascom Construction will float shares on Egyptian and Dubai bourses

  • OCI has already begun demerger process
  • Total of 15.8 million shares will be offered
  • Price range for qualified institutional offering is $13.3 to $15.2

The Netherlands-listed OCI NV is aiming to raise up to $240m with the sale of shares in its engineering and construction arm on the Egyptian Exchange.

OCI has already begun the demerger process, which will establish Orascom Construction as a separate entity from its fertiliser and chemicals business, which will remain listed on the Euronext Amsterdam index.

Orascom Construction will be offering new ordinary shares representing 10-15 per cent of its ordinary shares to public retail investors, and through a private placement to qualified institutional investors.

A total of 15.8 million shares will be offered.

The price range for the qualified institutional offering has been set at an equivalent of about $13.3 to $15.2. The bookbuilding process for the qualified institutional offering has already started and will close on 26 February.

The demerger is due to take place on 7 March through a $1.4bn reduction in OCI’s capital, whereby shareholders will receive one Orascom Construction share for every two OCI NV shares they own at the end of 6 March.

The listing and trading of the newly created Orascom Construction in Dubai is planned to take place on 9 March, followed by the listing in Egypt between 9 and 11 March.

For the Cairo listing, Egypt’s EFG Hermes is the global coordinator and joint bookrunner, while Egypt’s CI Capital and HSBC Bank Middle East are joint bookrunners.

EFG Hermes is working as the sponsor bank on the offering in Dubai, while the US’ Bank of America Merrill Lynch, the UK’s Barclays and HSBC Middle East are the joint financial advisers.

OCI is owned by the Sawiris family, who moved the company’s primary listing to Holland in 2013. The company had been embroiled in a now-settled tax dispute under the former Muslim Brotherhood-supported Egyptian government, led by ex-president Mohamed Mursi. A court ruled in OCI’s favour in November 2014.

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