Arab Finance: Ahram Security Group is in negotiations with three Egyptian investment banks to manage the initial public offering (IPO) of up to 30% of its shares on the Egyptian Exchange (EGX) next year, Chairman Samir Aref told Al Arabiya Business.
The mechanical and smart security solutions provider postponed the listing from its original target of 2026 and is currently evaluating a number of financial advisory firms before appointing one to oversee the technical and financial studies required for the transaction.
According to Aref, the final offering size will be determined after those studies and valuations are completed. The IPO is expected to range between 10% and 30% of the company's capital, subject to the financial advisor's recommendations and market conditions at the time of the offering.
As it moves forward with its listing plans, the company is targeting sales of EGP 2.7 billion by the end of 2026, compared with about EGP 2.2 billion last year, representing projected growth of 20%. Aref said the company generated around EGP 1.3 billion in revenue during the first half (H1) of the year, meeting its sales target for the period.
The company is also seeking to expand its export business by increasing exports' contribution to total production to 25%, up from about 17% currently, through higher production capacity and entry into new overseas markets. Ahram Security Group currently exports to around 27 countries.
Aref said export revenue reached approximately $6 million last year and is expected to rise to around $8 million by the end of this year, marking growth of more than 30%.
To support both domestic and export growth, the company plans to invest around EGP 500 million in its factory in 10th of Ramadan City during the remainder of this year to expand production capacity. Aref said the investment will be financed primarily through internal cash flow as elevated borrowing costs continue to weigh on bank financing.
Meanwhile, the company has suspended its plan to establish a manufacturing facility in Saudi Arabia. Instead, it is considering opening a representative office in Dubai to assess demand across Gulf markets and build a regional sales network.
Aref added that the Dubai office would require limited initial investment, while any future expansion, including a potential manufacturing facility in the Jebel Ali Free Zone or another industrial zone, would depend on the outcome of feasibility studies.
