Grace Ashiru
ValU CEO Walid Hassouna calls the firm’s upcoming EGX debut “a significant milestone” that cements its role as a leading fintech player in the region. Indeed, U Consumer Finance S.A.E. (operating as ValU) won provisional approval to list on the Egyptian Exchange under ticker VALU.CA following an EFG Holding share restructuring.Â
The company’s shares were officially entered on the EGX on 21 May 2025, with trading expected to begin the week of 22 June 2025, subject to final regulatory sign-offs. Under the plan approved at EFG’s May 24 shareholders meeting, EFG will distribute EGP 335.3m of its retained earnings as an in-kind dividend – issuing shares that will equal 20.488% of ValU’s post-transaction equity. In practical terms, each EFG Holding shareholder will receive roughly one ValU share per 3.3273 EFG share owned. Once the Financial Regulatory Authority (FRA) registers the listing and ratifies the required disclosure report, ValU’s stock will begin normal trading.
EFG Holding has set a 12 June 2025 record date for the share swap, after which those EFG shareholders automatically become direct holders of ValU equity. A capital increase was formally effected so that EFG now directly owns that 20.488% stake in ValU – the rest of ValU’s shares remain held by EFG’s subsidiaries and private shareholders. Importantly, trading of the new ValU shares is still contingent on FRA approval: the FRA must complete ValU’s registration and approve the listing prospectus (trading disclosure report) before quoting can start. In summary, ValU is poised to join the EGX with a sizable float, backed by its parent EFG and with 20.5% of its capital coming free to market through the dividend-in-kind scheme.
EGP 1.0bn Securitized Bond Deal Fuels Growth
The IPO move comes as ValU taps debt markets to bulk up its balance sheet. On 22 May 2025, ValU closed its 15th securitized bond issuance, raising EGP 1.036 billion of capital. (This was the fifth issuance under a newly approved EGP 16.0bn securitization program.)Â
The deal brought ValU’s total securitized funding to about EGP 12.3 billion to date. Each bond is backed by a portfolio of ValU’s receivables and structured via an EFG Hermes special-purpose vehicle. ValU’s CFO Karim Riad explains that securitization is “a vital component of our funding strategy,” allowing ValU to diversify beyond traditional bank loans and tap capital markets to fuel its rapid expansion.
 In effect, these bond issuances provide ValU with low-cost, off-balance-sheet financing for consumer loans – a crucial complement to its IPO. Analysts note that this continuous bond program has given ValU deep pockets for growth (roughly $20–25m per year), while showcasing to investors and regulators that ValU can transparently securitize its loans. In short, the EGP 1.04bn bond round underlines how ValU is positioning itself as a capital-markets-savvy lender, blending debt and equity financing to scale its digital finance offerings.
ValU’s Evolution: From BNPL Startup to Digital Finance Leader
ValU was founded in 2017 by EFG Hermes (through its finance arm) as a pioneer of Egypt’s buy-now-pay-later (BNPL) model. In its early years the company focused on point-of-sale consumer financing, partnering with merchants (from electronics to fashion) to offer interest-bearing installments at checkout. By 2024 ValU had achieved impressive scale – reporting roughly EGP 3.1 billion in gross revenues and EGP 423 million net profit – even as it expanded beyond Egypt into Saudi Arabia.Â
The company today touts having financed purchases at over 8,500 merchants across the region. Alongside pure BNPL, ValU has rolled out related services: it now offers deposit savings products, prepaid cards and a co-branded Visa credit card, investment funds and instant cash-out, and even financing for luxury loans up to tens of millions of pounds.
Reflecting this broadening, ValU last year received a full fintech license from Egypt’s Financial Regulatory Authority. The license allows ValU to provide an end-to-end digital customer journey – including electronic KYC, digital contract signing and online wallet or account services – rather than just installment loans. Management says this approval cements its identity as a “universal financial technology powerhouse”.Â
In practical terms, ValU is positioning itself as a one-stop digital bank for underserved consumers: it envisions combining the flexibility of BNPL with deposit, credit and payment products in a mobile app. This strategy made ValU one of Egypt’s best-known fintech brands: as the company puts it, the “Valu” name is already “synonymous with the BNPL model in Egypt”.
Why This IPO Matters for Egypt’s Fintech Market
ValU’s stock market debut is widely seen as a bellwether event for Egypt’s nascent fintech sector and the broader exchange. It is among the first major tech-finance companies in the region to hit the public market (Egypt’s Fawry e-payments firm was a trailblazer in 2019). A successful listing would signal that investors are willing to value fintech business models, not just traditional banks or oil-and-gas plays. For its part, ValU CEO Hassouna emphasizes that the IPO “marks a significant milestone” and validates ValU’s disruptive impact in finance. The boost in public profile – and capital – could help ValU challenge bigger banks and foster competition in consumer lending.
Investors are watching closely. Egypt’s overall equity market has shown renewed vigor: the EGX 30 index gained about 8% in Q1 2025, as regional IPO activity picked up (MENA stock exchanges saw 14 IPOs raising ~$2.4bn in Q1 2025, up sharply from a year earlier). In this environment, a high-growth fintech could find strong demand. In fact, ValU’s parent EFG chose to list via a share-swap rather than a public float, but market observers note that even private placement of its shares was met with enthusiasm. If ValU trades well post-debut, it may convince regulators and business media that Egypt’s markets can accommodate modern fintech offerings. It also validates the FRA’s recent push to license new financial platforms – showing that regulatory modernization (digital finance licenses, sandbox rules, etc.) can go hand-in-hand with capital-market exits.
Broader Impact: Paving the Way for MENA Fintech IPOs
The spillover effects could be significant. Other Egyptian fintech startups – from digital lenders to payments apps – may now see an IPO as a viable exit or growth strategy. There are already dozens of fintechs in Egypt (covering micro-lending, insurance, wealthtech, etc.) backed by local VC and banks; successful trading by ValU could encourage them to list domestically rather than only raising private equity or seeking foreign listings. Regional investors, including sovereign and pension funds, are also tuned in: they have shown interest in tech growth stories, and might now allocate more to Cairo’s market.
