EGYPT – Fawry, an online payment company, has announced its plans to raise EGP 800 million (US$50.93m) of growth capital through a rights issue to existing shareholders.
The proceeds will be used to fund a new chapter of expansions in financial services for both consumers and merchants. In addition to growing the Company’s offerings on MyFawry, the offering will help position the Company on the forefront of the Super App opportunity in Egypt.
Moreover, the Company 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, insuretech among other verticals.
The Company’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 in the event that the necessary shareholder and regulatory approvals are obtained.
The Company’s board of directors also approved the creation of an American Depositary Shares (ADS) program 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 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 by means of 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.
Recently, Fawry partnered GoDaddy Inc., a company that empowers everyday entrepreneurs to facilitate the process of going online for startups and entrepreneurs in Egypt.
In partnership with Fawry, GoDaddy will provide startups and entrepreneurs with unique services and tools, including GoDaddy E-store, to successfully build their digital presence, aiming at helping them attract customer attention and conversions to grow their businesses.
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