Egyptian consumer financing platform ValU has taken a big step toward going public. On Thursday, the Egyptian Exchange (EGX) gave preliminary approval for ValU’s parent company, U Consumer Finance, to list its shares on the stock market under the symbol VALU.CA.
The listing includes 1.99 billion shares with a nominal value of EGP 0.10 each, totalling about EGP 199.6 million (around $4.1 million). The shares will be listed in the Non-Banking Financial Services sector starting May 22, but trading will only begin after all regulations are met.
Six months FRA registration deadline
ValU has six months to complete registration with the Financial Regulatory Authority (FRA) and meet all listing requirements. Without this, the listing could be revoked. Extensions are possible but require FRA approval and a clear plan. Until full approval, trading will be limited.
An extension is feasible only with FRA clearance, supported by strong arguments and a well-defined company roadmap. Until the FRA gives its complete approval, trading of the shares will be limited.
Additionally, the EGX reminded the company of its need to follow reporting and disclosure guidelines throughout the interim listing period.
ValU’s $27.2 million fundraise
Alongside the listing, ValU completed a securitisation deal worth EGP 1.36 billion ($27.2 million). This is part of a larger EGP 16 billion ($312 million) program designed to unlock cash from its consumer credit portfolio.
EFG Hermes coordinated the deal, with Arab African International Bank and EFG Hermes Investment Bank acting as underwriters.
From BNPL to full-service service digital provider
ValU started as a Buy Now, Pay Later (BNPL) platform but has grown into a full-service digital finance provider. It now offers products like lifestyle financing programs Ulter and Shaqlabaz, and the AZ ValU Cash Fund.
The company recently received a FinTech license from the FRA, enabling fully digital services like e-contracting and secure data verification.
To increase public float and liquidity after listing, EFG Hermes announced plans to distribute some revenues to shareholders as ValU shares.
ValU’s upcoming initial public offering (IPO) is expected to be one of Egypt’s largest fintech listings. While the exact timing and valuation are still unknown, this move could set a precedent for other fintech firms considering going public.
Mai Hamdy, Executive Director of Debt Capital Markets at EFG Hermes, said the listing shows the maturity of Egypt’s fintech ecosystem and the readiness of its capital markets to support digital financial companies. She also highlighted how securitisation helps ValU diversify its funding sources.
“The listing of a player like ValU could have a multiplier effect,” noted Hamd. “It sends a signal about the maturity of Egypt’s fintech ecosystem and the readiness of capital markets to absorb digital-first financial companies.”
ValU’s December 2024 securitisation tranche, worth EGP 519 million ($10 million), attracted institutional investors like Arab Banking Corporation.
As the listing approaches, the company will focus on attracting investors, securing regulatory approvals, and maintaining growth despite economic challenges. ValU also plans to expand its services across the MENA region, including launching a co-branded credit card with Visa.
ValU’s journey from BNPL startup to soon-to-be publicly traded fintech offers valuable lessons for other companies transitioning from private to public funding. It remains a key player to watch in the Middle East’s evolving financial sector.