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Actis exits Edita Foods in heavily oversubscribed IPO

Image Credit: Edita Food Industries

Actis has sold a 15% stake in a partial exit from Egypt’s Edita Food Industries, one of North Africa’s leading snack food businesses.  According to a press release on the pan-emerging markets private equity firm’s website, interest in the offering was intense, with both the  institutional and retail offerings being oversubscribed, at 13.4 times and 4.4 times respectively .

Speaking about the IPO, Actis Director and Edita Board Member Sherif Elkoly noted “The strong interests received for the IPO signals significant appetite from both Egyptian and international institutional investors.”

In June 2013, Actis invested $102 million for a 30% stake in the company.  Edita Foods manufactures and distributes a range of branded baked snack products including packaged cakes, croissants, rusks, wafers and confectionary.  Among the brands in its portfolio are a number of household names in North Africa, including Molto, Todo, HoHos, Twinkies, Bake Rolz, Freska and MiMix. In 2014, the company generated EGP 1.9 billion (approximately $265 million) in sales.

Since Actis’s original investment, Edita has launched its new headquarters and logistics hub, boosted production capacity with a investment in a new factory, while improving its corporate governance standards to meet international levels.

Trading in the company’s stock on the Egyptian Stock Exchange – and on the GDRs on the London Stock Exchange – began on April 3rd, 2015.  The IPO price of EGP 18.5 gives Edita a market capitalization of EGP 6.7 billion or approximately $890 million.  Actis still retains a 15% interest in the company.

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  1. SPE Capital | Actis exits remaining stake in Edita Foods

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