ValU Shares Begin Trading on the Egyptian Exchange, Amazon Acquires 3.95% Stake for EGP 502.8 Million
The Egyptian Exchange (EGX) has officially commenced trading of ValU, the consumer finance arm of EFG Holding, on its secondary market. The trading debut followed the execution of block trades involving 83.2 million shares, with a total transaction value of approximately EGP 502.8 million.
The EGX set an opening reference price of EGP 0.777 per share, based on ValU’s disclosure report for trading purposes. The stock has been added to the list of securities eligible for trading in bid fractions of one-thousandth of an Egyptian pound (0.001 EGP).
Amazon Finalizes 3.95% Acquisition in ValU
In a parallel development, EFG Holding announced that Amazon has exercised its option to acquire a direct stake in ValU, as per a strategic agreement signed in May 2022. Amazon acquired 3.95% of ValU’s shares at a price of EGP 6.041 per share, using the block trading mechanism during ValU’s debut trading session. The transaction was executed following the necessary regulatory approvals.
EFG Holding confirmed the successful completion of the share distribution to its shareholders, with the group retaining a 67% stake in ValU through its subsidiary EFG Finance Holding.
Listed Under the Medium Activity Market with Flexible Price Limits
The EGX’s operations committee approved the listing of ValU in the medium activity market, which allows same-day trading (T+0) and margin trading. The share is also eligible to be used as collateral for up to 80% of its market value.
For its first trading session, price limits were set between the par value of EGP 0.10 and the upper bound of EGP 7.40, which represents the fair value outlined in the company’s disclosure report. Temporary suspension mechanisms were not applied during the debut session, while regular price limits will be enforced starting from the second trading day, in line with the rules governing the market segment.
Pre-Listing Protected Transactions
Ahead of the official listing, EGX announced last Wednesday the execution of protected transactions covering 431.5 million ValU shares, representing 20.48% of the company’s total shares. These were traded at a price of EGP 0.77 per share, amounting to a total of EGP 335.3 million, as part of preparations for the stock’s market debut.