In an unusual but increasingly relevant move for emerging market fintechs, Egypt’s Valu is preparing to enter the public markets without raising a single Egyptian pound. Instead of pursuing a conventional initial public offering (IPO), the consumer finance platform will be listed on the Egyptian Exchange (EGX) through an in-kind share distribution by its parent company, EFG Holding.
This approach, ratified by EFG Holding’s general assembly, will see 20.49% of Valu’s share capital allocated to existing EFG shareholders. For every 3.3273 shares of EFG Holding held, investors will receive one Valu share. The record date for distribution is set for June 12, with shares expected to start trading during the week of June 22, pending final regulatory clearance.
Founded as a buy-now-pay-later startup, Valu has since grown into a full-stack digital finance platform offering unsecured lending, co-branded credit cards, prepaid payment solutions, investment products, and point-of-sale financing. It now works with over 8,000 merchants and has processed more than 9.2 million transactions.
In 2024, Valu reported EGP 3.1bn ($62.2 million) in gross revenue and EGP 423m ($8.4 million) in net profit — a 78% increase year-over-year. It issued EGP 14.8bn ($297 million) in consumer loans and facilitated EGP 16.5bn ($331 million) in gross merchandise value. Transaction volumes are growing rapidly, with 16,000 daily transactions recorded in Q1 2025, more than doubling year-on-year.
The company’s financial position is equally robust. Its non-performing loan (NPL) ratio stands at just 0.72%, supported by an in-house machine learning system that enables instant credit decisions. A Visa-backed prepaid card now accounts for nearly a third of all transaction volumes. On the funding side, Valu has securitized over EGP 13.3bn ($267 million) and maintains EGP 8.3bn ($166 million) in credit lines across 22 financial institutions.
What This Means for Shareholders
The unconventional route to listing changes the dynamics for both EFG Holding and its shareholders. Instead of raising fresh capital or diluting ownership through a public offering, Valu’s listing is structured as a return of value. Shareholders in EFG are not paying for new shares — they’re receiving them. This gives them direct exposure to Valu, whose market valuation will now be determined independently.
Crucially, this listing unlocks part of the hidden value on EFG’s balance sheet. Shareholders will be able to assess Valu as a standalone entity, and trade its shares separately based on its own operational and financial merits. It also provides liquidity and flexibility, especially for institutional investors seeking direct fintech exposure in Egypt without the conglomerate overlay of EFG.
Why This Matters
IPOs in Egypt and across MENA tend to be slow-moving and reserved for traditional or state-linked companies. Technology firms, particularly those operating in financial services, have historically struggled to access public markets due to regulatory friction, investor unfamiliarity, or structural inefficiencies.
Valu’s approach offers a compelling alternative. By bypassing the capital-raising process, it avoids the need for a book-building phase and sidesteps valuation uncertainties often associated with IPO roadshows. It also sends a strong signal to other tech founders: there are viable, non-dilutive pathways to liquidity and public market exposure.
For Egypt’s capital markets, the move may help broaden sector representation and attract a new class of retail and institutional investors interested in high-growth, asset-light companies. If successful, Valu’s listing could encourage similar moves from other tech-enabled businesses with strong parent companies or institutional backers.
EFG Hermes is serving as sole financial advisor, with Zulficar & Partners acting as local legal counsel and Gibson, Dunn & Crutcher handling international legal matters.
In listing without raising funds, Valu is choosing control over cash, structure over scale. But if market reception is positive, the fintech may have set a blueprint for the region’s next generation of public listings.