19/12/2005 Telecom Egypt joins the Main Market
19 December 2005
The London Stock Exchange is delighted to welcome Telecom Egypt to the Main Market.
Telecom Egypt is the incumbent telecommunications provider in Egypt, and is also the largest provider of fixed-line services in the Middle East with more than 10.3 million customers (as at the end of September 2005) representing a teledensity of 14.5%. The company was formed 150 years old when the first telegraph line connecting Cairo and Alexandria was inaugurated early in 1854, forming the company that was later to become Telecom Egypt.
The listing is the fourth in London from the Middle East and North Africa region in 2005 and is expected to be the largest international equity offering out of this region to date. The offer of shares by the Egyptian Government represents 20% of Telecom Egypt’s outstanding share capital. The extent of interest and demand for shares in Egypt, across the Middle East, Europe and the United States has resulted in the offering being oversubscribed many times.
Commenting on the IPO, Telecom Egypt Chairman, Mr Akil Beshir, said:
“The offer of shares in Egypt and listing of GDRs on the London Stock Exchange comes at a time when Telecom Egypt has witnessed consistently good results – operationally and financially – for a prolonged period. We look forward to this new chapter in our life as a listed company.”
Credit Suisse First Boston along with EFG Hermes acted as lead managers for the offer. Legal counsel was provided by Baker & McKenzie and Dewey Ballantine. Capital MS&L acted as Financial PR and IR advisers on the offering.