MNT Tech Receives LE 4 Billion Capital Injection After IPO

MNT Tech Holding for Financial Investments, the Egypt-listed arm of MNT-Halan, has received LE 4 billion in fresh capital from parent company MNT Investments BV following its recent IPO.

The investment represents around 51% of the LE 7.84 billion raised in the offering, which was structured as a fully secondary sale. Founder and CEO Mounir Nakhla had said before the book opened that at least half of the parent company’s proceeds would be reinvested into the listed business, with the remainder allocated to the group’s operations in Turkey and an undisclosed acquisition in an Arabic-speaking market.

According to board minutes, MNT Investments BV subscribed to 163.27 million new shares at the LE 24.50 IPO offer price. The capital increase raises MNT Tech’s issued capital to LE 176.3 million from LE 160 million, while the number of shares rises to 1.76 billion from 1.6 billion.

The increase will now be submitted to the Financial Regulatory Authority, the Egyptian Exchange and Misr for Central Clearing, Depository and Registry.

The capital increase was reserved for the parent company under approvals granted at an extraordinary general meeting on September 16th, before the IPO, when MNT Investments BV was still the sole shareholder. Following the sale of 320 million shares in the offering and a further 24.3 million shares to senior management, the parent’s stake stood at 78.5%. The new shares will raise that stake to 80.47% of the enlarged company.

MNT Tech’s IPO sold a 20% stake at LE 24.50 per share and was 16 times covered overall. The institutional tranche was subscribed 11.2 times, while the retail tranche was covered 43.6 times.

The company debuted on the Egyptian Exchange on October 20th and closed its first session 6.6% higher at LE 26.12, after reaching an intraday high of LE 28.80. MNT Tech has not yet disclosed how the LE 4 billion in fresh capital will be deployed.