TAQA Arabia’s IPO in the EGX “not in the near future” – sources
Qalaa Holdings’ TAQA Arabia won’t be making its EGX debut in the near future due to the potential for market volatility caused by the pandemic, the local press reported yesterday, quoting sources close to the matter.
Qalaa had reportedly planned to list 30-40% of its portfolio company in the first half of 2020. The company had reached a valuation and wrapped up all procedures necessary for the sale prior to the pandemic, but now has to conduct a new fair value study and revisit the size of the stake to list on the EGX, the sources say.
Qalaa had tapped EFG Hermes and HSBC to manage the IPO, and Grant Thornton to take care of the fair value report.
If TAQA is mothballed for now, it also means we’re unlikely to see ERC list. Pre-pandemic, Qalaa had planned to list the parent company of its Egyptian Refining Company (ERC) in 4Q2020, with bulge-bracket fixtures JPMorgan, Citigroup and Goldman Sachs vying for the mandate alongside EFG Hermes, HSBC and Renaissance Capital.
That was before the turmoil that swept EM — and the collapse of oil prices into negative territory. ERC’s profitability is tightly linked to global oil prices.