MNT-Halan to Reinvest Up to $80 Million From IPO Proceeds in Egypt, Turkey and the Gulf
MNT-Halan plans to reinvest more than half of the proceeds from its planned offering on the Egyptian Exchange into its Egyptian business, while directing the remaining funds toward investment opportunities in Turkey and the Gulf as part of its regional expansion strategy.
Monir Nakhla, Founder, CEO and Managing Director of MNT-Halan, said the planned offering is expected to raise around $150 million. Of this amount, the company intends to reinvest between $75 million and $80 million into its Egyptian operations, while the remainder will be allocated to investments in Turkey or the Gulf region.
IPO Proceeds to Support MNT-Halan’s Egyptian Business
Nakhla explained that the planned IPO does not represent a full exit by existing shareholders. Instead, the holding company will sell approximately 20% of its stake, with more than half of the proceeds being reinvested into the Egyptian company through a capital increase.
This structure will allow a significant portion of the funds generated through the offering to return to the company’s operating and investment activities.
The company’s main priority in the next phase will be expanding its business in Egypt by developing its financial services, increasing technology investments, and growing its customer base from current levels to several million users.
MNT-Halan Serves 2 Million Platform Users
MNT-Halan operates in the non-banking financial services sector, with financing representing its core activity alongside payments and investment services.
The company relies on a network of branches and points of presence across Egypt, supported by its technology platform and digital application.
According to Nakhla, the platform currently has around 2 million users, while approximately 1.3 million customers currently have active financing.
The company’s business portfolio is also approaching $950 million, according to his statements.
The reinvestment of IPO proceeds into the Egyptian business is intended to finance a new stage of growth amid continued demand for non-banking financial services and the increasing use of technology to deliver financial products and reach new customer segments.
Revenue Growth Expected to Remain Strong
Nakhla said MNT-Halan’s revenue has recorded a compound annual growth rate of between 35% and 40% over the past five or six years.
Going forward, the company expects its growth rate to stabilize at between 25% and 30%.
The planned offering comes as MNT-Halan Holding for Financial Investments prepares to list its shares on the Egyptian Exchange, in what is expected to be one of the major offerings in Egypt’s fintech and non-banking financial services sectors.
MNT-Halan Targets 320 Million Shares in Base IPO
The company plans to offer approximately 320 million shares, representing 20% of its total 1.6 billion shares, at EGP 24.50 per share.
Based on the base offering size, the value of the shares offered would reach approximately EGP 7.84 billion.
The transaction structure also allows for the offering to be increased to 400 million shares, equivalent to 25% of the company’s total shares, subject to the relevant terms and approvals.
CIB and London-Based Fund Commit to IPO Investments
Nakhla revealed that Commercial International Bank – Egypt (CIB) has signed a cornerstone investment agreement worth up to approximately $36 million in the offering.
A London-based investment fund has also signed a cornerstone investment agreement worth around $20 million.
Together, the commitments mean that cornerstone investors would cover more than one-third of the total offering value.
CIB Relationship Spans 13 to 15 Years
Nakhla said CIB’s participation is particularly significant for MNT-Halan given the relationship between the two companies, which has lasted approximately 13 to 15 years.
He noted that CIB was among the company’s largest lenders during its earlier growth stages.
The bank’s transition from a lender to an equity investor represents an important development in the relationship between the two sides, Nakhla said.
Following completion of the investment, CIB’s stake in the company will remain below 5%.
MNT-Halan Expands Across Regional Markets
Alongside the IPO, MNT-Halan continues to expand its regional presence across several markets, including Turkey, the UAE, and Pakistan.
Part of the newly generated resources is expected to be directed toward investment opportunities in Turkey and the Gulf.
Nakhla also clarified that the current offering is focused on the Egyptian company and the Egyptian market and does not include a dual listing on other stock exchanges.
Potential future offerings involving subsidiaries or business units in other markets could be considered during 2027 and 2028.
The planned IPO therefore represents a new stage in MNT-Halan’s strategy. Beyond making part of the company’s ownership available for trading on the Egyptian Exchange, the transaction is designed to recycle a substantial portion of the proceeds into the Egyptian business to fund growth, technology investments, and customer acquisition, while allocating the remaining funds toward regional investments in Turkey and the Gulf.