Live on Bloomberg TV

00:00The ambitions are clear which is a vote for Egypt's let let let's let's load it home. You're on the road show. That's correct. Let's tie these things dying. Are we any closer to a time in a date and a price. I know you one hundred and twenty million dollars. What's the bandwidth for price. Well we've just started our process a few days ago the router we were in Abu a few days ago we went South Africa. Here in Dubai off to Saudi Arabia tonight then back to Egypt. Nikkei us. So it's a it's a long process but it's very interesting we're meeting a very wide range of investors there's a lot of interest in the company and I think it stems from interest in the market as a whole and price. As you said we're looking to raise one hundred twenty point twenty five million dollars. That should be about 40 percent of the company. So subject to regulatory approval of course we're still in the process of fair value reports and the prospectus and so on. So it shouldn't be somewhere in the range of 300 million dollars for the company. Company valuation 40 percent would be the free float. OK. And that will give me an Egyptian pine price tag EV come into the market off the whole company for an after 5 billion. Look at the price in pines Where are you targeting that in terms of the market five points six pine Seven Pines decking though the shares. So that's a pound somewhere in between. OK . Any big pillar investors you're on the road you're going to tonight. Let's see whether MBNA once put some money into it . But are you seeing any core institutional names wanting to buy a proportion of the company. Yes absolutely. There's been a lot of interest. We've also gone on a long pre marketing trip a few months ago to shore up initial interest and there's been already several investors that have expressed interest in taking substantial stakes. When you say substantial stake what you mean 3 percent 4 percent 5 percent in that range in that range that range. So but obviously this will start in the beginning of the process we have a long way to go on this roadshow and the signs are good so let's see. Hopefully things will turn out well. What's my risk here. I'm looking at your default rate. I mean you do you do insurance for houses for cars. We'll talk about that. You've got autocratic you've got household furnishing. You've got a whole range of business your default rate stands at an impressive what point three percent at the moment. Yes. What is my risk here. Can you sustain those kind of default levels or do I just naturally assume as you grow they will rise. Well we've grown quite substantially in the past few years and we were growing at over 50 percent annually for the past five years both on income and and business size. So we're looking to continue that growth. One of the key things that we've put in place and built this business around is our credit assessment and the collection capabilities or the credit knowhow is the core part of the business. And we spent a number of years at the beginning building just that so that as we grow more aggressively like we are now that we do not have to be in that situation. That's the key part of our business . Raising one hundred and twenty million dollars. What what are you actually going to spend that on is that for tech is up for . Is that for development. What is the key purpose of the capital business. Our has been the key part that we're investing in is boosting our equity base overall . That feeds into many parts including our overall capacity on balance sheet off balance sheet. As you as you know we're one of the we're the largest issue of secret position bonds in the market. We are 79 percent you are 79 percent of the securitization market is still quite small. We're hoping that it will grow and that we can be a smaller part of a much bigger market. But we're the most active player in the market. And so boosting our equity opens up our capacity across the board . We'll also be investing in insurance as we're setting up new insurance business that we hope will be a big part of our future as well. We're working in markets that are very under penetrated. And so the key part of the strategy is to try to roll out products that help increase penetration rates across the board and finance and insurance. You know the country is going through a big phase of trying to push financial inclusion and we feel that we're an important contributor to that. Always trying to benchmark I mean last time I was in the country was just a couple of months ago I was over there with the finance minister trying to assess you know it's a good news story. Inflation good news the currency stability etc.. How strong is the consumer. Well the consumer is a key part of the economy of course the Egyptian economy is built on or a key contributor to its consumption. It's not the only one it shouldn't be the only one. But in particular in financial services the numbers are extremely low the penetration figures are low they've gone up in recent years there's still a long way to go in insurance numbers are very low and there's a lot of work to be done there to bring out new products to market new services to market in ways that appeal to the Egyptian consumer across the board .

No schedule data available.

Egypt's Sarwa Capital Looks to Raise $120M in IPO

Sarwa Capital CEO Hazem Moussa discusses the company's intention to proceed with an initial public offering on the Egyptian Exchange. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

More From Bloomberg Daybreak: Middle East
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips