Wilzy Secures EGP 1.6 Billion Valuation for Capital Increase

Wilzy Financial Holding needed an independent fair value assessment to support its planned capital increase transaction. The company required a comprehensive valuation that would comply with Egyptian regulatory standards and support their strategy to build a sustainable digital platform for brokerage and asset management services. The challenge was to conduct a thorough valuation that would account for both current market conditions and the company's future growth potential in the Egyptian financial services market.

Andersen in Egypt provided comprehensive valuation services using a systematic, top-down analytical approach. The solution included:

**Step 1. Economic Analysis (Macro Level):**
- Assessed macro indicators including GDP, inflation, rates, FX, and policy
- Evaluated economic cycles and capital market impact
- Correlated GDP growth with EGX trading activity

**Step 2. Industry Analysis – Brokerage and Asset Management Sectors:**
- Reviewed key pillars of the securities industry including brokerage and asset management
- Analyzed Egyptian Stock Exchange key highlights
- Evaluated Egyptian indices historical performance
- Assessed the impact of government privatization programs on trading volumes

**Step 3. Forecast Wilzy's Brokerage Market Share and Revenue Assessment:**
- Forecasted future trading using GDP projections
- Estimated total retail brokerage market size
- Determined Wilzy's retail revenue and calculated market share
- Assessed Wilzy's pricing strategy
- Forecasted Wilzy's revenues over the projection period

**Step 4. Forecast Wilzy's Asset under Management (AUM) Market Share:**
- Estimated total retail AUMs market size
- Forecasted Wilzy AUMs market share
- Analyzed AUMs pricing strategy
- Forecasted Wilzy AUM revenues over the projection period

**Step 5. Valuation Analysis:**
- Co-developed business plan projections
- Challenged assumptions
- Applied DCF methodology with appropriate WACC
- Concluded on final fair value estimate

The valuation was conducted in full compliance with Egyptian Valuation Standards (EVS) issued by the FRA, ensuring regulatory alignment and technical rigor.

The valuation engagement delivered significant results:

- Wilzy Financial Holding was valued at approximately EGP 1.6 billion, equivalent to EGP 10.83 per share
- The independent fair value report was officially filed with the Egyptian Exchange and approved by the Financial Regulatory Authority (FRA)
- The valuation provided a solid foundation for Wilzy's planned capital increase transaction
- Regulatory compliance was achieved through adherence to Egyptian Valuation Standards (EVS)
- The comprehensive analysis supported Wilzy's commitment to build a sustainable digital platform leveraging market experience for long-term value creation
- The engagement was successfully led by Andersen in Egypt's Financial Advisory Department under Senior Partner Mohamed A. Abdelhaleem