Egypt’s EFG Hermes eyes Saudi expansion with IPOs, merger deals

Egypt’s EFG Hermes is anticipating winning initial public offering (IPO) mandates in Saudi Arabia as it seeks new growth markets.

It is also hoping to close a deal to acquire a Nigerian broker next month, Reuters reported.

Saudi Arabia could be a major growth market for EFG Hermes, which is the biggest investment bank in the Middle East but derives much of its business from Egypt and the UAE.

The investment bank has already announced plans to expand its staff as it targets mandates in Saudi Arabia, where it expects the IPO market to pick up by the end of 2018.

“EFG Hermes was looking to win mandates to advise on private sector IPOs and mid-market mergers and acquisitions in Saudi Arabia,” said Mohamed Fahmi, co-head of investment banking, EFG Hermes.

“Many potential candidates for IPOs in the Kingdom are looking at dual listings and at issuing global depository receipts (GDRs),” he said.

These listing options are yet to be approved but the Saudi Capital Markets Authority is looking to implement them, he added.