EBRD sells remaining stake in Ibnsina Pharma

EGYPT—The European Bank for Reconstruction and Development (EBRD) has sold its remaining 8.8% stake in Ibnsina Pharma through the Egyptian Exchange (EGX), marking its complete exit from the company.

The EBRD initially acquired a 20% stake in Ibnsina Pharma in 2015 through a mix of primary and secondary transactions, aiming to fund the development of the company’s warehouses, distribution centers, and overall supply chain.

Since the EBRD’s investment, Ibnsina Pharma has experienced significant growth, establishing itself as the leading pharmaceutical distributor in Egypt and expanding into various non-pharmaceutical operations.

Reflecting on this partnership, CEO Omar Abdel Gawad emphasized the EBRD’s crucial role in the company’s expansion and its journey to becoming the top player in the Egyptian market.

Hassan Massoud, who manages the EBRD’s private equity business in the southern Mediterranean, highlighted Ibnsina Pharma as a highly successful investment for the Bank, despite challenges in Egypt’s macroeconomic environment.

He also noted that the scale and timing of this transaction demonstrate the Egyptian Exchange’s credibility as a viable exit platform for successful private equity investments.

Established in 2000, Ibnsina Pharma is an Egyptian joint stock company specializing in pharmaceutical product distribution.

Headquartered in Cairo, the company operates a nationwide network of distribution outlets and warehouses.

The EBRD has made several equity investments to promote and support the private sector in Egypt. These include investments in Infinity, Africa’s largest renewable energy developer; Hassan Allam Renewable Energy; Global Corp, a leading leasing and factoring company; and Tamweely, a prominent microfinance company.

The Bank has also successfully invested in—and subsequently exited—Egyptian healthcare providers such as Cleopatra Hospitals and Adwia/KELIX Bio.

As a founding member of the EBRD, Egypt has benefited from the Bank’s investments since it began operations there in 2012.

The EBRD has invested more than €13.8 billion (US$14.32 billion) in the country through 196 projects. These investments span sectors such as finance, agribusiness, manufacturing, and services.

Additionally, the Bank has supported infrastructure projects in areas like power, municipal water and wastewater services, and efforts to upgrade transport services. 

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