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EFG Hermes successfully concludes AlOthman’s sale of 17% of Humansoft

EFG Hermes successfully concludes AlOthman’s sale of 17% of Humansoft

ArabFinance: EFG Hermes (HRHO) , a leading financial services corporation in frontier and emerging markets, has successfully concluded the USD 226 million sale of 17% of Humansoft Holding Company K.S.C.P (“Humansoft”), the GCC’s largest private tertiary education company, by Al Othman Commercial Enterprises Company (“Al Othman”) in a widely marketed accelerated equity offering.

This Reg S/144A transaction is the largest accelerated equity offering in the Middle East and North Africa, and is among the top ten in Emerging EMEA in 2018. EFG Hermes acted as sole bookrunner and financial advisor to Al Othman.

“We are delighted to conclude our second GCC ECM transaction in under two months, this one coming on Boursa Kuwait, a market that is expected to positively perform over the coming few months,” said Mohamed Ebeid, Co-CEO of the Investment Bank at EFG Hermes. “Our position as one of the largest securities brokers in Kuwait and the largest in the region, in addition to being the leading ECM advisor in MENA has enabled us to launch and close this transaction in a record time; the transaction was successfully placed in 8 hours. More importantly the transaction offered us the opportunity to avail a highly compelling investment play in one of the region’s most promising markets and sectors.”

Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes added, “Our ability to manage back-to-back equity capital market transactions across different markets and listing venues demonstrates the strength and depth of our investment banking team and the placement power of our syndicate and distribution teams.”

This transaction marks EFG Hermes’ third equity capital market transaction in under two months. Earlier in July EFG Hermes acted as joint bookrunner on the GBP 125 million IPO of ASA International Group PLC on the London Stock Exchange – advising one of the world’s largest microfinance institutions on the first ever listing by a microfinance lender in Europe. In June, EFG Hermes had advised on the USD 52 million accelerated equity offering of Orascom Construction Industries on Nasdaq Dubai.

“This transaction is the largest internationally-marketed accelerated equity offering to ever come out of Kuwait – and the largest public market equity placement out of Kuwait since 2012. The strong interest from high-quality international institutional investors in what has been a less than easy environment for frontier and emerging markets reflects the quality of Humansoft’s business model and is a testament to investor confidence in the Kuwaiti market” noted Fahmi. “We are off to a strong start to the second half of the year by successfully closing this landmark transaction, building on the momentum from the first half of the year during which we were ranked as the top MENA ECM advisor.”

EFG Hermes has been named the top MENA ECM advisor by market share of fees generated in 1H18 with a 24.4% market share , having completed several key transactions including Orange Egypt’s follow-on offering, which raised USD866 million, the largest MENA ECM transaction year-to-date.

The sale of 17% of Humansoft comes approximately two months before Kuwait’s expected phase one entry to the FTSE Russel Emerging Market Index. In April 2017, EFG Hermes had also acted as joint bookrunner on a similar accelerated equity offering for 10% of Humansoft shortly prior to Kuwait’s upgrade to EM status on the MSCI EM index in May 2017.

The transaction will be executed in accordance to the rules and regulations of Boursa Kuwait and the Kuwait Clearing Company.

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