Business · North Africa
MNT-Halan’s parent ploughs EGP 4bn of its IPO proceeds back into the Egyptian fintech
A week after one of Egypt’s biggest listings in years, Dutch parent MNT Investments has paid up a capital increase of about $71 million, about half of what it raised by selling shares. Its stake rises to just over 80%. Regulators must still sign off.
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CAIRO — The Dutch parent of Egyptian fintech MNT-Halan has paid up an EGP 4bn capital increase in the company, putting about half of what it raised in this month’s initial public offering back into the listed business. Board minutes from Monday’s meeting show that MNT Investments BV subscribed for 163.27 million new shares in MNT Tech Holding for Financial Investments at the EGP 24.50 offer price, Enterprise reported. Jawlah put the value at more than $71 million.
The structure explains the move. The IPO was fully secondary, so all EGP 7.84bn went to the selling shareholder and none to the company. The capital increase is how new money reaches the Egyptian operating business. By Enterprise’s calculation, it equals about 51% of what the offering raised. Shareholders approved the arrangement at an extraordinary general meeting on 16 September, before the listing. Subscription was reserved for the parent at the offer price, and IPO buyers were not entitled to take part, according to the exchange disclosure summarised by StartupHub.
Mostly premium, mostly Egypt
The nominal increase is small. The new shares carry a par value of 10 piastres, so issued capital rises by only about EGP 16.3m. The remaining EGP 3.98bn or so is booked as share premium in a special reserve. The increase now goes to the Financial Regulatory Authority, the Egyptian Exchange and Misr for Central Clearing, Depository and Registry for approval.
Founder and chief executive Mounir Nakhla has said the bulk of the money will go into Egypt to support the balance sheet and expand lending, Jawlah reported. The rest of the parent’s proceeds will fund the group’s business in Turkey and a planned acquisition in an Arabic-speaking market that he has not named. Enterprise said it is not yet known how the company will deploy the EGP 4bn. MNT-Halan says it serves about 7.9 million customers and holds more than 24% of Egypt’s microfinance market, according to Jawlah.
A busy window for Cairo listings
The offering drew strong demand. It was 16 times covered, with the retail tranche 43.6 times oversubscribed, and the stock closed its first session on 20 October up 6.6% at EGP 26.12, Enterprise said. Arab Finance, via Zawya, reported more than 41,500 subscription orders for the public tranche. Banque du Caire’s IPO is next: its retail book was 6.8 times covered on Wednesday, and its shares are expected to start trading on 2 November, subject to approvals.
AB24’s reading from Cairo: reinvesting part of the IPO proceeds this way is common in founder-led listings. It shows that the float was a partial exit for the parent, with fresh capital arriving only through this second step. What to watch is how far the money lifts MNT-Halan’s lending book at a time when the pound is weaker against the dollar and competition among non-bank lenders is rising.
Sources: Enterprise, 27–28 Oct 2026; Jawlah, 28 Oct 2026; StartupHub.today, 27 Oct 2026; Arab Finance via Zawya.
— AB24 · Cairo