Egypt’s Ibnsina Pharma Plans Expansion After $90 Million IPO

CAIRO (Capital Markets in Africa) – Ibnsina Pharma, Egypt’s second-biggest pharmaceuticals distributor, plans to invest 700 million Egyptian pounds ($39 million) over the next five years to expand its storage hubs using the proceeds from its ongoinginitial public offering.

The company, which is offering 40 percent of its shares in the local market for about $90 million, plans to add 20 new distribution centers over the next five years to boost growth, co-Chief Executive Officer Omar Abdel-Gawad said in an interview in Cairo. Ibnsina’s share sale, from which $15 million will be plowed back into the company as capital, has received interest from local and major foreign investors, he said.

“The market is good and there’s good sentiment and appetite for Egyptian stocks, especially in a defensive sector like pharmaceuticals,” Abdel-Gawad said.

Increased foreign investor interest in Egypt following a reform program that involved floating the currency and cutting subsidies is encouraging more local companies to seek funds from the market.

Ibnsina expects revenue to grow by about 32 percent to 9.6 billion Egyptian pounds this year and to 11.8 billion pounds in 2018, Abdel-Gawad said. The company plans to conclude the share sale next week, with the stock to begin trading on Dec. 12.