The Dutch holding company behind Egyptian fintech group MNT-Halan has moved to solidify its control over the newly listed business, subscribing to a 4bn Egyptian pound ($71mn) capital increase that leaves it with a commanding 80 per cent stake.

MNT Investments B.V. purchased 163.3mn newly issued shares in MNT Tech Holding for Financial Investments — the Egyptian operating entity that trades as MNT-Halan — at the initial public offering price of EGP 24.50 per share, according to board minutes dated October 26. The injection lifts the company’s issued capital to EGP 176.3mn from EGP 160mn, and its total share count to 1.76bn.

The capital increase, first flagged during the IPO process, was fully paid up by the time of the board meeting. The proceeds are designated as fresh capital to fund the company’s next phase of growth, with founder and chief executive Mounir Nakhla indicating that “maybe even more than half the money goes to Egypt as a capital increase” to bolster the balance sheet, while portions are also earmarked for operations in Turkey and a potential acquisition in an Arabic-speaking country.

A landmark listing, then a swift recapitalisation

The move follows MNT-Halan’s highly anticipated float on the Egyptian Exchange (EGX) on October 20, which was the country’s largest IPO in dollar terms since at least 2021. The offering comprised a secondary sale of 320mn ordinary shares — equivalent to a 20 per cent stake — held by MNT Investments B.V., raising approximately $144.2mn (EGP 7.84bn).

Demand was intense. The public offering was covered 43.6 times, while the private placement was covered 11.2 times, attracting orders from more than 300 investors across over 10 countries, including the UK, France, Switzerland and South Africa. Total subscription demand reached $2.3bn (EGP 126bn), according to EFG Hermes, the offering’s international coordinator and bookrunner. The shares rose as much as 18 per cent on their trading debut.

The stake sold and the offer price implied a total equity valuation of $720mn ahead of the capital increase. The subsequent injection by the parent company therefore represents a significant vote of confidence in the listed vehicle’s standalone prospects, even as the free float remains relatively modest by international standards.

The mechanics of the share premium

A notable feature of the transaction is its structure. The new shares were issued at a nominal value of just EGP 0.10 (approximately $0.0018), but subscribed at EGP 24.50 — the same price as the IPO. The difference of EGP 24.40 per share is recorded as a share premium, generating a special reserve of approximately EGP 3.98bn ($71mn) for the company.

In practical terms, this means almost the entire value of the capital injection bypasses the share capital line on the balance sheet and flows directly into a reserve account. While this does not change the total quantum of cash raised, it is a standard accounting treatment for growth companies issuing shares at a price far above their nominal value, and it preserves the flexibility of the stated capital structure.

From tuk-tuk financing to non-bank financial services

MNT-Halan’s trajectory from a ride-hailing app for tuk-tuks and motorbikes in low-income Egyptian neighbourhoods to the country’s largest non-bank financial services company underpins investor appetite for the listing. The group holds micro, consumer and nano finance licences from the Financial Regulatory Authority, as well as an independent electronic wallet licence from the Central Bank of Egypt.

It serves approximately 7.9mn customers and had disbursed more than EGP 178bn in financing since inception as of June 30, 2026. By the end of 2025, it held a 24.3 per cent share of Egypt’s non-bank microfinance market by loan book value, and accounted for 14 per cent of non-bank consumer finance disbursements.

The capital increase comes amid a broader thaw in Egypt’s capital markets. Nakhla has noted that the same IPO transaction would have raised only $30mn to $40mn in early 2024, when currency controls had effectively frozen inbound portfolio capital. The pound has since been floated and an IMF programme put in place, materially improving the risk profile for foreign investors.

What the restructuring signals

For MNT Investments B.V., the sequence of transactions — selling a 20 per cent stake to the public and then immediately reinvesting a similar quantum back into the business — amounts to a strategic recapitalisation rather than an exit. The parent company has converted a portion of its holding into a broader institutional shareholder base while simultaneously injecting fresh growth capital, all while retaining an 80 per cent controlling position.

The remaining question for public-market investors is how the company deploys that capital. With a substantial share premium reserve and an expanded balance sheet, MNT-Halan has what Nakhla describes as “firepower to grow” — the ability to leverage its equity base several times over to expand its lending book, pursue regional acquisitions, and defend its position in Egypt’s rapidly evolving non-bank financial services sector.

The capital increase is now subject to filing with the Financial Regulatory Authority, the EGX, and Misr for Central Clearing, Depository and Registry.