Egyptian fintech leader Valu has received formal approval from the Egyptian Exchange (EGX) to list its shares, marking a pivotal milestone in its journey towards becoming a publicly traded company. This development forms part of a broader strategy by its parent company, EFG Holding, to enhance shareholder value through strategic equity distribution. The move underscores the rising investor confidence in Egypt’s fintech ecosystem and highlights Valu’s growing influence in the regional financial services sector.
Share Distribution Replaces Cash Dividend
As part of the listing process, EFG Holding will allocate 20.488% of Valu's shares to its shareholders in lieu of a traditional cash dividend for the 2024 fiscal year. This innovative approach offers investors direct exposure to Valu’s anticipated growth and market potential. The share distribution remains subject to regulatory approvals and registration with Egypt’s Financial Regulatory Authority (FRA), with trading to commence once these conditions are met.
Saudi Investors Inject $27 Million in Growth Capital
In tandem with the listing preparations, Valu has successfully secured $27 million in new capital from prominent Saudi investors, including the Saudi Investment Bank and Sanabil Investments. This funding round is expected to significantly enhance the company’s capital base and provide the financial strength needed to support future growth. The investment also signals strong regional interest in Egypt’s fintech landscape, especially in consumer finance innovations.
Digital Expansion at the Core of Valu’s Strategy
Valu plans to leverage the fresh capital and listing momentum to deepen its digital capabilities and broaden its suite of financial services. The company recently acquired a fintech license from the FRA, empowering it to deliver a seamless and fully digital customer experience. This development aligns with Valu’s ambition to become a comprehensive digital finance platform, moving beyond its core "buy now, pay later" offerings.
EFG Hermes and Zulficar & Partners Lead Advisory Effort
To ensure a smooth and transparent listing process, EFG Hermes has been appointed as the financial advisor, while Zulficar & Partners Law Firm is serving as the legal advisor. The coordinated efforts of these key players are aimed at positioning Valu for long-term success in the public markets. Their involvement also reflects the transaction’s strategic importance and the complexity of navigating the regulatory landscape.
Strategic Alignment Remains a Priority Post-Listing
Following the listing, EFG Holding will continue to retain a majority stake in Valu, maintaining strategic control and alignment with the company’s long-term goals. This arrangement ensures that Valu benefits from the continued support and oversight of its experienced parent entity. The structure also allows for operational continuity and reinforces investor confidence in the group’s integrated growth vision.
Valu’s approval for public listing and the recent capital injection from Saudi investors collectively represent a significant inflection point for both the company and Egypt’s broader fintech sector. With strong financial backing, a progressive digital strategy, and regulatory support, Valu is well-positioned to scale its operations and attract public market investors. As it prepares for its market debut, the company stands as a symbol of innovation and resilience in the region’s evolving financial ecosystem.