Al Tawfeek for Financial Lease (AT Lease) is targeting new financial lease contracts worth EGP 1.2bn in 2018, CEO and Managing Director Tarek Fahmi told Daily News Egypt.
“We are on track to sign new deals to enhance our company performance. Our profit should be on the rise too as a result of the new contracts,” Fahmi confirmed.
The company, which sold 24% of its shares in an initial public offering (IPO) last year, is eyeing achieving EGP 70m in net profit.
The company’s cumulative portfolio has exceeded EGP 6bn since 2006 until 2017, he noted.
Fahmi added that his company could hire banks or other financial leasing firms to participate in arranging mutual financing for large contracts.
The financial leasing services provider has contracts with 17 banks with credit facilities valued at EGP 3bn, Fahmi said, adding that the company has used EGP 1.6bn of these facilities and the remaining EGP 1.4bn is available for implementing the company’s plan for 2018.
AT Lease is also planning to launch a special sector for small- and medium-sized enterprises (SMEs), considering the possibility of collaborating with lenders to execute this initiative.
“We are targeting new investment opportunities in different sectors, including the financial, industrial, and real estate sectors,” Fahmi noted.
AT Lease is owned by Arab Moltaqa Investment by 90%, while Al Barka Bank Egypt owns the remaining 10%.
The company has established a fair value of EGP 6.93 per share.
Seventy-five percent of the shares on offer have been sold through an institutional offering, with the rest earmarked for retail investors.
The company is backing the share price for a period of one month after trading begins through a stabilisation fund.
When Fahmi was asked about the usage of the IPO proceeds, he said they will be used in diversifying its financing base, mitigating risks, and exploring new investment opportunities in different sectors.
The company distributed over 100% of its paid-in capital in dividends to its shareholders last year, Fahmi noted.
AT Lease’s paid-in capital stood at EGP 200m by the end of the third quarter (Q3) of 2017.
Fahmi expects net income to grow by 20-25% in 2018.
The company’s net profit stood at EGP 43m in Q3 2017.
Fahmi said in September that AT Lease is looking to offer EGP 500m in funding for companies in the pharmaceutical, education, automotive, and real estate sectors.
Pharos Holding served as the sole bookrunner and coordinator for the AT Lease IPO.