Egyptian financial services company MNT Hala is set to list on the Egyptian stock exchange, with a valuation of EGP 39.2 billion. According to a research report by Almal News, the company's initial public offering (IPO) is expected to begin trading on the exchange by October 20, 2026. The report recommends subscribing to the IPO, citing the company's high growth potential. MNT Hala's IPO will offer 320 million shares, representing 20% of its capital.
The research report highlights MNT Hala's strong financial performance, with a net profit of EGP 0.91 billion in the first half of 2026. The company's revenue is expected to grow significantly, with a projected net profit of EGP 2.4 billion in 2026 and EGP 3.6 billion in 2027. This represents a growth rate of 50% year-on-year. The company's valuation is estimated at 16.3 times its expected net profit for 2026 and 10.9 times for 2027.
MNT Hala's diversified financing activities are seen as a key strength, with a loan portfolio that is distributed across various sectors. The company's loan portfolio consists of 39% microfinance, 32% small and medium-sized enterprises, and 28% consumer finance. The company has also seen significant growth in its consumer finance sector, with a 14% increase in the first half of 2026.
The research report also highlights MNT Hala's efficient operations, with a cost-to-revenue ratio that is expected to decline over time. The company's general, administrative, and selling expenses accounted for 42% of its revenue in 2025, although this is expected to decrease. In comparison, rival company Valuo has a cost-to-revenue ratio of 29%.
MNT Hala's IPO will be supported by major investors, including the Commercial International Bank and Redwell, which will invest EGP 2.0 billion and $20 million, respectively. These investments will cover 38% of the IPO. The company plans to use the proceeds to increase its capital and expand its operations.
The research report also notes that MNT Hala's listing will have a positive impact on its parent companies, GB Corp and Hermes. The listing is expected to set a minimum price for GB Corp's shares and boost the value of Hermes' stake in Valuo.
Despite potential risks, including credit risk and challenges in controlling costs, the research report recommends subscribing to MNT Hala's IPO. The company's strong financial performance and diversified financing activities are seen as key strengths. The IPO is expected to open for subscription from October 7 to 15.
Key points
- MNT Hala's valuation is estimated at EGP 39.2 billion, with a growth rate of 50% year-on-year.
- The company's IPO will offer 320 million shares, representing 20% of its capital.
- Major investors, including the Commercial International Bank and Redwell, will support the IPO.
