Egypt’s Mobinil eyes rise in free float to 15%
Funding push would have to involve large discount, says analyst
Egyptian operator Mobinil's CEO has said the company is considering a raise in its free float from 1% to 15% and is favouring the selling of shares to the wider market to comply with ownership regulations, Reuters reported.
"It's very challenging to raise money in Egypt even if it's a high-profile name like Mobinil - they would need to give a big discount," The National Investor portfolio manager Sebastien Henin.
Mobinil is majority-owned by France Telecom since May 2012 after the French operator paid GBP202 per share for a 94% stake. Mobinil's shares closed on Monday at EGP141.96.
"For France Telecom it would be a big capital loss if they have to sell shares to increase the free float," Henin added.