U Consumer Finance S.A.E., Known Under the Trademark of Valu Announces its Intention to Float on The Egyptian Exchange

Logo of U Consumer Finance S.A.E. (“Valu”)

U Consumer Finance S.A.E. (“Valu”), the leading universal financial technology powerhouse in Egypt, announced today its intention to proceed with the trading of its shares on the Egyptian Exchange (the “EGX”), following the completion of an in-kind dividend distribution* by EFG Holding S.A.E. (“EFG Holding”) (the “Dividend Distribution”). Valu was listed on the EGX on 21 May 2025 (the “Listing,” and together with the Dividend Distribution, the “Transaction”). Valu’s shares will be admitted to trading on the EGX following registration with the Egyptian Financial Regulatory Authority (the “FRA”), the completion of the Dividend Distribution and the ratification of the trading disclosure report by the FRA**.

The Dividend Distribution was approved by the Ordinary General Assembly meeting of the shareholders of EFG Holding on 24 May 2025 (the “OGM”). The OGM approved the utilization of EGP 335,322,346 out of the distributable retained earnings of EFG Holding, which figure is based on the financial statements of EFG Holding for the financial year ending on 31 December 2024, for the purposes of an in-kind dividend distribution (in lieu of a cash dividend distribution) to the shareholders of EFG Holding, in the form of shares in the share capital of Valu, which shares represent 20.488% of the share capital of Valu. 

The Dividend Distribution is based on Valu's book value according to the consolidated financial statements for the financial year ending on 31 December 2024. The ratio of the number of Valu shares that will be allocated to the shareholders of EFG Holding is 1 Valu share per3.3273 EFG Holding shares (with fractional shares allocated to minority shareholders). 

As announced earlier today, EFG Holding has determined that the record date is set on 12 June 2025, for the owners of shares of EFG Holding and the purchasers of shares of EFG Holding, as of the end of the trading session held on the Thursday 12 June 2025, which accordingly will become direct shareholders in Valu, after completing the necessary procedures. 

The commencement of trading on the Valu shares on the EGX is expected to take place during the week commencing on 22 June 2025, subject to receipt of the relevant regulatory approvals.
 

Valu and EFG Holding engaged EFG Hermes Promoting and Underwriting S.A.E. to act as sole financial advisor in connection with the Transaction, and Zulficar & Partners to act as legal counsel. EFG Holding also engaged Gibson, Dunn & Crutcher LLP to act as legal counsel to EFG Holding in connection with the international aspects of the Transaction.

Walid Hassouna, Valu’s Chief Executive Officer

Commenting on the Listing, Walid Hassouna, Valu’s Chief Executive Officer, said: "This listing marks a significant milestone in Valu’s journey, and is a testament to the disruptive and positive impact we have made in the market as one of the leading fintech players in the MENA region and Egypt’s leading fintech platform. With the full backing of our parent EFG Holding, we’re unlocking new value for our customers and shareholders, and accelerating our mission to democratize access to finance in the region.”

*An in-kind dividend is a non-cash payout of assets to shareholders, often used for distributing securities, property, or other assets instead of cash.

**Please note that the trading disclosure report has not been ratified by the FRA yet.
 

KEY INVESTMENT HIGHLIGHTS

The leading fintech platform in Egypt offering a universal suite of financial solutions to individuals and businesses
 

- Valu is Egypt’s prominent consumer finance and digital financial services platform, with a market-leading position in Consumer Finance, Buy-Now-Pay-Later (BNPL), and prepaid cards. It commands a c. 25% share of the EGP 17bn total issuances in the market in Q1 2025 (c.27% excluding auto loans), with unmatched brand equity and reach.

- The company has delivered robust growth since inception, recording over EGP 41bn in gross merchandise value (GMV) and over 9.2 million cumulative transactions as of the first quarter of 2025, enabled by a deeply embedded network of over 8,000 merchants.

- In Q1 2025, Valu’s average daily transactions reached 16k vs. 7.2k in Q1 2024, a testament to the scalability of the platform and its robust growth.

Resilient and scalable business model supported by exceptional financial performance
 

- Valu has delivered a 118% GMV CAGR, 116% loan issuances CAGR, and 146% gross revenue CAGR between 2019 and 2024.

- In FY 2024, Valu generated EGP 3.1bn in gross revenue, with net income reaching EGP 423mn – a 78% increase year-on-year – demonstrating strong operating leverage and margin enhancement.

A comprehensive product universe with proven monetization across verticals
 

- Valu offers an end-to-end platform across lending (BNPL, cash redemption, luxury financing, auto financing), payments (prepaid and co-branded cards), investments (EFG Hermes ONE, AZ Valu Fund), and B2B financial solutions (Valu Business).

- Its recently launched prepaid card (in partnership with Visa) gained significant traction and contributed to 30.7% of FY 2024 transactions.

A digitally native, brand-driven customer base with market-defining reach and loyalty

- Valu is the most recognized fintech brand in Egypt, with 100% brand awareness and 89.4% positive/neutral sentiment in market surveys.

- The company commands 45% of all BNPL-related digital conversations in Egypt, supported by a growing digital community of over 1.7 million followers across social platforms.

Technology-first DNA with proprietary, AI-driven risk underwriting infrastructure
 

- Valu’s in-house machine learning models allow instant credit decisioning in under 10 minutes, with automated fraud detection and dynamic risk scoring.

- This drives strong risk metrics, with an 0.72% NPL ratio as of December 2024, even amid hypergrowth.

A diversified and well-capitalized funding platform with extensive securitization track record
 

- The company has issued 14 securitized bond offerings with a cumulative EGP 13.3bn securitized portfolio and holds EGP 8.3bn in authorized funding lines from 22 partner banks and NBFIs as of the first quarter of 2025.

- Securitization and off-balance-sheet funding reduce leverage risk and enable efficient capital deployment.

Clear roadmap for growth through innovation, expansion, and efficiency gains
 

- Valu is expanding into adjacent verticals including affiliate marketing and prepaid payments, and is evaluating regional expansion opportunities.

- The company is executing cost optimization initiatives and leveraging scale to enhance operating margins.

Proven leadership team with a track record of scale, innovation, and execution
 

- Led by CEO Walid Hassouna, Valu’s management team includes experts in strategy, risk, data science, product development, and finance, with a strong track record of launching and scaling innovative financial products.

FINANCIAL HIGHLIGHTS

Average Daily Transactions: 16k transactions per day in Q1 2025 compared to 7k transactions per day in Q1 2024.
 

Gross Merchandise Value (GMV): EGP 16.5bn in 2024; 118% CAGR since 2019.
 

Loan Issuances: EGP 14.8bn in 2024: 116% CAGR since 2019.
 

Gross Revenue: EGP 3,057mn in 2024: 146% CAGR since 2019.
 

Net Revenue: EGP 1,529mn in 2024: 139% CAGR since 2019.
 

Net Profit: EGP 423mn in 2024, vs. EGP 237mn in 2023 (+78% y-o-y), 164% CAGR since 2019.

Note: NOT FOR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.
 
This announcement is not a prospectus and not an offer of securities for sale or subscription in any jurisdiction, including in or into the United States of America, Canada, Japan, South Africa, the United Arab Emirates or Australia. Nothing in this announcement is intended to, or constitutes, an offer (or an intention to make an offer) by any person for shares in U Consumer Finance S.A.E. No shares are being offered to the public by means of this announcement.