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Egypt Files Criminal Case Against Beltone in Sarwa IPO Saga

  • Sarwa’s shares plunged as much as 19 percent in trading debut
  • Government postponed stake sales of state companies after flop
Egypt Economy As Expanded Suez Canal Expected To Attract Investors
Photographer: Shawn Baldwin

Egypt’s market regulator filed a criminal case against officials at Beltone Financial for alleged wrongdoing during the initial public offering of a financial services company late last year, according to media reports.

The move is linked to a case filed by Beltone in the administrative court where it sought to reverse the Financial Regulatory Authority’s decision to suspend its investment bank unit’s operations for six months after the lackluster Sarwa Capital IPO. The regulator claimed wrongdoing in the book building for the firm that went public in October, and said it received complaints from investors about being allocated bigger stakes than they wanted.