Tunis - March 31st, 2014
Swicorp, a leading investment banking and asset management firm focused on the MENA region, announced the successful listing of Sotipapier on the Tunis Stock Exchange. Swicorp acquired a strategic stake in Sotipapier in May 2012 through Intaj Capital II (Intaj II), a private equity investment vehicle managed by Swicorp. Sotipapier is among the leading producers of paper for industrial use in North Africa.
Discussions between Swicorp and the Hamrouni Group, founders of Sotipapier, began in 2011 amidst a challenging political, social and economic environment in Tunisia, and concluded in May 2012 with the closing of the transaction. Since then, the management team implemented an ambitious plan aimed at growing and further institutionalizing the company, thus preparing the company for a successful listing on the Tunis Stock Exchange in less than 24 months. The listing, which covered 9.5 million shares representing 40% of the company’s shares, was oversubscribed nearly 10 times, with demand for the shares exceeding TND 400 million (US$ 250 million) for a total expected market capitalization of TND 120 million (US$ 76 million). With Intaj II and the Hamrouni Group jointly owning a controlling stake in the company post-IPO, Sotipapier is poised to drive further growth in the coming years, by investing in expanding its production capacity and geographic footprint, while continuously improving the quality and performance of the products it manufactures.
Nabil Triki, Managing Director in charge of Swicorp’s private equity activities and Chairman of the Board of Directors of Sotipapier, stated “the success of this investment confirms our view that despite the challenging environment, the MENA region in general and countries such as Tunisia and Egypt specifically, provide compelling investment opportunities for private equity investors with in-depth insights into the region. The actions undertaken since the investment within the company and the improvements realized in terms of governance, operations and investments, have translated into higher profitability and enhanced growth potential. This demonstrates the positive impact that Private Equity can have on companies in the region, to ensure both the development and the sustainability of such companies, and to positively contribute to local economies capital markets”.