EFG Board Plans to Give Shareholders a 20.5% Stake in Subsidiary Valu, Plans to List Valu on Stock Market

BY THE ARAB TODAY Mar 20, 2025

EFG Board Plans to Give Shareholders a 20.5% Stake in Subsidiary Valu, Plans to List Valu on Stock Market
EFG Board Plans to Give Shareholders a 20.5% Stake in Subsidiary Valu, Plans to List Valu on Stock Market

EFG Board Plans to Give Shareholders a 20.5% Stake in Subsidiary Valu, Plans to List Valu on Stock Market

The board of Egypt’s largest investment bank, EFG Holding, has agreed to sell 20.49% of its subsidiary Valu (also called U Consumer Finance) to its shareholders and to list Valu’s shares on the local stock market.

Share Offering

Valu, a fintech company owned by EFG Holding, announced that it will give some of its shares to EFG shareholders instead of paying them cash dividends. This is part of a plan to reorganize Valu.

The number of shares each shareholder receives will be based on how much of EFG Holding they already own, and the shares will be given at their book value (the value listed in the company’s financial records). EFG also said employees will receive shares through its stock option program.

Valu’s shares have been approved to be listed on the Egyptian Exchange (EGX). After completing the necessary steps with the Financial Regulatory Authority (FRA), trading of the shares will begin. Even after the listing, EFG Holding will keep at least 67% ownership in Valu through its subsidiaries.

According to Keys Financial Consulting, Valu’s fair value is $310 million (EGP 15.59 billion). This value was approved by Valu’s general assembly. EFG Hermes Promoting and Underwriting has been chosen to manage the listing and trading process on the EGX.

Important Quote

Karim Awad, CEO of EFG Holding (ranked ninth on Forbes Middle East’s Top 30 Asset Managers 2024), said:
“By giving some of Valu’s shares to investors, we are setting a new, creative way of offering shares. This move increases the number of investors and improves the market’s liquidity. It also gives investors a chance to benefit from Valu’s future growth.”

Background Info

Valu recently got a fintech license from the FRA, which allows it to offer a complete digital financial experience. With this license, Valu aims to change how Egyptians use financial services. Known for its “buy-now, pay-later” services, Valu will offer fast electronic verification, digital contracts, and secure online record-keeping, making things easier for customers.

Key Numbers

Valu leads Egypt’s consumer finance sector with a 24% market share. So far, it has financed 7.8 million transactions, showing strong financial performance, according to EFG Holding.

Published: 20th March 2025

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