EGYPT · MARKETS
Key Facts
- —The country Egypt’s Cairo stock exchange keeps FTSE Russell emerging-market status.
- —What happened MNT-Halan’s Egyptian arm opened IPO subscriptions on Wednesday, 7 October.
- —The numbers A 20% stake at US$0.47 a share raises about US$150 million.
- —Early demand Local reports on first-day demand conflict; no official figure yet.
- —The tax break Listings valued at US$954 million or more get 15% off income tax.
- —What it means for you US bank Citi co-leads; US institutions can join the international book.
An Egyptian fintech lender’s US$150 million share sale opened as the bourse chief promoted a three-year tax break for much larger listings.
The MNT-Halan IPO opened on Wednesday, 7 October, on the Egyptian Exchange (EGX) in Cairo. The fintech lender’s parent is selling 320 million shares in its Egyptian arm, worth EGP 7.84 billion (about US$150 million).
US bank Citi co-leads the deal, which follows a July tax law meant to draw big listings and foreign money to Cairo. Early demand reports from local financial media conflict, and no official coverage figure has been published.
How the MNT-Halan IPO Is Built
The seller is the parent company, MNT Investments B.V., which owns the Egyptian arm, MNT Tech Holding for Financial Investments. No new shares go to the public, so the sale proceeds go to the parent rather than the listed company.
The parent will reinvest up to EGP 4 billion (about US$76 million) in the Egyptian arm through a capital increase. Founder Mounir Nakhla said the rest funds its Turkish business and a deal in an unnamed Arabic-speaking market.
That detail comes from Enterprise, a Cairo business newsletter. MNT-Halan was founded in December 2009 and serves customers through the Halan app and more than 1,200 outlets in 25 governorates.
Institutions and wealthy individuals can bid for 272 million shares until Tuesday, 13 October. The public tranche of 48 million shares stays open until Thursday, 15 October.
Minimum orders are EGP 10 million (about US$191,000) for institutions and EGP 5 million (about US$95,000) for wealthy individuals. Retail buyers can bid for as few as 100 shares, paying 25% of the order upfront.
If demand is strong, the private tranche can grow by 80 million shares, lifting the deal to 25% of the company. That would raise up to EGP 9.8 billion (about US$187 million), subject to approval by the Financial Regulatory Authority, Egypt’s non-bank regulator.
Commercial International Bank (CIB), a leading private Egyptian lender, has committed up to EGP 2 billion (about US$38 million). Its statement of Monday, 5 October, says the cornerstone deal was signed on 24 September for the international offering.
London fund manager Redwheel has pledged about US$20 million, Enterprise reported. By that outlet’s count, the two anchors cover up to 39% of the base offer.
At EGP 24.5 (about US$0.47) a share, the offer values the Egyptian arm at about EGP 39.2 billion (about US$748 million). Independent adviser BDO Keys put fair value at EGP 25.92 (about US$0.49) a share, so the offer carries a 5.5% discount.
The Tax Break the Bourse Is Selling
EGX chairman Omar Radwan used a television interview on Wednesday evening to promote the new incentives. On the DMC channel’s Masa’ DMC programme, he said the exchange wants more weight in global indexes, Al-Shorouk reported.
The incentive sits in Law No. 151 of 2026, an amendment to Egypt’s income tax law. President Abdel Fattah al-Sisi signed it on Tuesday, 28 July, and it took effect the next day.
It gives companies that offer shares on the EGX through a regulator-approved prospectus a 15% discount on income tax due. The discount runs for three years from the offering date.
The company’s shares must have a fair market value of at least EGP 50 billion (about US$954 million) at the offering. It must also float at least 20% of its shares, or shares worth at least EGP 10 billion (about US$191 million).
The break is granted once in a company’s life and cannot be combined with other tax incentives. The finance minister may extend it for another three years, under conditions agreed with the regulator.
The package also exempts gains on listed shares from capital gains tax, while unlisted holdings stay taxed. Radwan presented that gap as a reason for owners to list.
Companion Law No. 153 charges buyers and sellers a stamp duty of 0.05% each, whether resident or not. Trades bought and sold on the same day pay 0.025% per side.
On the prospectus figures, MNT-Halan’s Egyptian arm appears to fall short of the size test. Its 1.6 billion shares at the adviser’s fair value total about EGP 41.5 billion (about US$792 million), below the floor.
Neither the company nor the Egyptian Tax Authority has said whether it will seek the incentive.
Why Foreign Investors Matter Here
Foreign investors were net sellers of about EGP 2.09 billion (about US$40 million) of Egyptian shares in the third quarter, Enterprise reported. Their share of trading fell to 6.1%, from 10.3% in the first quarter.
The offer was marketed to investors in the UK, the Gulf and the United States, according to the same outlet. Enterprise calls it the first in a line of big offerings, including state-owned Banque du Caire and Misr Life Insurance.
Index status is the other prize. On Tuesday, 6 October, FTSE Russell kept Egypt in its emerging-market tier after the market reached three eligible stocks.
Radwan said on Wednesday that Egypt had held only one eligible stock a year ago, against a minimum of two. Large new listings could widen that thin list, though index providers apply their own size and liquidity tests.
What It Means for US Readers
Citi, the New York bank, is joint global coordinator and bookrunner with Cairo investment bank EFG Hermes. US institutions can bid through the international offering, while the public tranche targets investors in Egypt.
For US funds that already hold Egyptian stocks, the tax change may matter more than this deal. Non-residents now pay a 0.05% stamp duty per trade, down from 0.125%, Finance Minister Ahmed Kouchouk said in August.
Returns also depend on the pound, which stood at about EGP 52.39 per US$1 at the central bank’s official rate on Wednesday. All conversions here use that rate.
What Is Not Known
First-day demand is unclear. The Cairo financial newspaper Al-Borsa News reported 62% cover of the public tranche, citing trading screens.
The business site Amwal Al Ghad, citing unnamed sources, reported public orders for only 6,884 shares and none in the private tranche. Neither the company nor the EGX has published coverage figures.
It is not known how much stock foreign or US investors will receive, or whether the upsize option will be used. Nakhla has not named the acquisition target or its market.
The law leaves the checks for the tax break to executive regulations, and their status could not be confirmed. Whether MSCI or FTSE Russell will add the stock to their indexes is also unknown.
What Comes Next
Any upsize must be announced at least three days before the public tranche closes on Thursday, 15 October.
Nakhla expects trading to start on Tuesday, 20 October, Enterprise reported. Radwan said at an Alexandria conference on Monday that Banque du Caire and Misr Life Insurance should list before year-end.
A full order book would not, on its own, show that foreign money is returning. Allocation data and trading after the debut will answer that.
Frequently Asked Questions
What is MNT-Halan?
MNT-Halan is an Egyptian technology-driven lender founded in December 2009 by Mounir Nakhla. It offers loans, payments and investments through the Halan app and more than 1,200 outlets.
How much is the MNT-Halan IPO worth?
The base offer of 320 million shares raises about EGP 7.84 billion (about US$150 million). An upsize could lift it to EGP 9.8 billion (about US$187 million).
Can US investors buy shares?
Institutions can bid in the private tranche, which includes an international offering marketed in the US. The public tranche of 48 million shares targets investors in Egypt.
What is Egypt’s new tax break for listings?
Law No. 151 of 2026 gives a 15% income tax discount for three years after listing. Firms need at least EGP 50 billion (US$954 million) in fair value and a 20% or EGP 10 billion (US$191 million) float.
Does MNT-Halan qualify for the tax break?
Its prospectus fair value, about EGP 41.5 billion (US$792 million), sits below the EGP 50 billion (US$954 million) floor. Neither the company nor the Tax Authority has said whether it will apply.
When does trading start?
Founder Mounir Nakhla expects trading on the EGX from Tuesday, 20 October, Enterprise reported. The public tranche closes on Thursday, 15 October.
Sources: Law No. 151 of 2026, Official Gazette (Egyptian Tax Authority); Law No. 153 of 2026, Official Gazette (Egyptian Tax Authority); Commercial International Bank statement, 5 October 2026; Central Bank of Egypt official exchange rates; Al-Borsa News, 7 October; Al-Borsa News, 5 October; Amwal Al Ghad, 7 October; Al-Shorouk, 8 October (tax break); Al-Shorouk, 8 October (FTSE Russell); Enterprise, 8 October; Enterprise, 7 October; Enterprise, 4 October; Masrawy, 1 October; Al-Mal, 4 August (all accessed 8 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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