Cairo, Egypt - Cairo-based fintech, Fawry for Banking and Payment Technology
Services S.A.E. (the “Company”, FWRY.CA on the Egyptian Exchange) has announced its plans to raise EGP800 million ($50.8 million) of growth capital
through a rights issue to existing shareholders.
According to a statement sighted by Techreview Africa, the
proceeds will be used to fund a new chapter of expansions in financial services
for both consumers and merchants.
It
noted that in addition to growing the Company’s offerings on MyFawry, the
offering will help position the Company at the forefront of the Super App
opportunity in Egypt.
“Moreover, the Company will continue to invest in strengthening
its position on merchant acquiring as well as supply chain solutions. A portion
of the proceeds will also be directed towards executing the Company’s
investment strategy, fast-tracking innovation, and supporting the budding
ecosystem of high-growth startups and fintech that complement Fawry’s offering
through e-commerce, logistics, fintech services, insuretech among other
verticals,” it stated..
The
statement further said the Company’s board of directors, including the
directors representing the main shareholders of the Company, have approved the
proposal to increase the capital to finance the company’s growth plans in the
event that the necessary shareholder and regulatory approvals are obtained.
“The
Company’s board of directors also approved the creation of an American
Depositary Shares (“ADS”) programme and is exploring a listing in the United
States in connection with a potential SEC-registered secondary offering. The
timing, number of ADSs and price of the proposed offering have not yet been
determined. The proposed offering is subject to market conditions, shareholder
and regulatory approvals, and there can be no assurance as to whether, or when,
the offering may be completed or as to the actual size or terms of the
offering,” it added.
These
materials are not an offer for the sale of any securities in the United States.
The securities may not be sold in the United States absent registration or an
exemption from registration under the U.S. Securities Act of 1933, as amended.
Any public offering of securities will be made by means of a prospectus that
may be obtained from the Company and that will contain detailed information
about the Company and management, as well as financial statements
