Cairo-based mortgage lender Qasatli Mortgage Finance is laying the groundwork for a potential public listing on the Egyptian Exchange in 2027. This marks a significant step in its long-term capital strategy.
Managing Director Ihab Omar revealed that the company has already begun drawing up its initial public offering (IPO) plans and is assessing three advisory firms to appoint a lead manager for the transaction.
The firm is initially targeting the sale of up to 50% of its shares. The move comes as Qasatli simultaneously seeks to raise approximately EGP 1 billion (around $20 million) this year.
It aims to expand its financing portfolio, deepen its footprint across Egypt, and position itself to capture growth in a mortgage market widely regarded as underpenetrated.
What Is Qasatli and What Does It Do?
Founded in 2018, Qasatli Mortgage Finance operates as a non-bank mortgage lender in Egypt, providing home financing solutions to individuals seeking property ownership.
The company is licensed by Egypt’s Financial Regulatory Authority to conduct mortgage finance activities, according to the regulator’s company records.
Since commencing operations, Qasatli has built a client base of around 330 customers, positioning itself as a niche but growing player in Egypt’s evolving housing finance ecosystem.
As a mortgage finance company, Qasatli enables customers to purchase residential property through structured repayment plans, rather than paying the full cost upfront.
In a market where traditional bank-led mortgage lending remains relatively limited, non-bank lenders such as Qasatli play an increasingly important role in broadening access to property ownership.
IPO Preparations Gain Momentum
Qasatli’s potential listing in 2027 forms part of what Managing Director Ihab Omar described as a longer-term growth strategy.
The company has “started drawing up an IPO plan” and is “currently assessing three advisory firms to select a lead manager for the offering,” Omar stated.
The lead manager will be responsible for structuring, marketing, and executing the share sale once it moves forward. Significantly, the firm is “initially targeting the sale of up to 50% of its shares,” signaling a sizeable float that could materially reshape its ownership structure.
An IPO would not only inject fresh capital but also enhance corporate visibility, governance standards, and investor confidence, critical elements for a financial services company operating in a developing mortgage market.
EGP 1 Billion Capital Raise to Fuel Immediate Growth
Ahead of the proposed IPO timeline, Qasatli is seeking to raise around EGP 1 billion this year to scale its financing operations.
Omar indicated that the funds will be used to “expand its financing portfolio in the local market,” underscoring the company’s near-term focus on growth rather than waiting for public market capital.
This capital injection is expected to support an ambitious 2026 target, Qasatli aims to reach business volume of EGP 3 billion by the end of that year.
The expansion strategy includes deepening its footprint across Egypt and enlarging its relatively modest but steadily growing customer base.
The scale of the fundraising effort suggests that Qasatli is placing itself to compete more aggressively in the mortgage space, leveraging new capital to extend more home loans and strengthen its balance sheet ahead of a potential public offering.
Pivot to “Non-Traditional” Funding Channels
A core pillar of Qasatli’s 2026 strategy is diversifying its funding base beyond conventional bank channels.
Omar noted that the company’s strategy centers on “non-traditional” funding solutions, including engaging local and international real estate investment funds to deploy direct investments in Egypt.
This shift reflects a broader trend among non-bank financial institutions seeking alternative liquidity sources to reduce reliance on commercial banks.
By tapping real estate investment funds, both domestic and foreign, Qasatli aims to secure more flexible and scalable capital pools. Such partnerships could also provide strategic benefits, including co-investment structures and portfolio risk-sharing mechanisms.
In practical terms, this approach may allow the company to lend more aggressively while managing funding costs and balance sheet exposure, particularly in a market where long-term mortgage liquidity remains limited.
Targeting Growth in an Underpenetrated Market
Mortgage finance remains a relatively small segment of Egypt’s broader financial system, with industry penetration often cited as low compared with peer markets.
This structural gap represents both a challenge and an opportunity. While limited mortgage uptake reflects structural constraints, such as affordability issues, regulatory complexity, and consumer awareness, it also signals significant headroom for growth.
Lenders and non-bank financiers have been attempting to address this gap through broader product offerings and alternative funding structures. Qasatli’s expansion plans and IPO ambitions align squarely with this industry-wide push to scale up housing finance access.
By targeting EGP 3 billion in business volume by 2026 and exploring diversified funding streams, Qasatli appears intent on positioning itself as a growth-focused player in a market still in its formative stages.
A Strategic Bet on Scale and Market Timing
Qasatli’s twin-track strategy, raising private capital in the near term while preparing for a public listing in 2027, showcases a deliberate effort to balance immediate operational expansion with longer-term institutional development.
If executed successfully, the planned IPO on the Egyptian Exchange would mark a milestone not only for the company but also for Egypt’s non-bank mortgage finance sector.
With regulatory licensing secured, funding diversification underway, and measurable growth targets in place, Qasatli is effectively placing a strategic bet on scale, timing, and the gradual maturation of Egypt’s housing finance market.
Talking Points
Qasatli’s planned 2027 listing on the Egyptian Exchange reflects a strategically timed attempt to institutionalize its growth ambitions within an underpenetrated mortgage market, yet its success will hinge on execution discipline and funding resilience.
The dual-track approach, raising EGP 1 billion in the near term while preparing to float up to 50% of its shares, shows confidence, but it also introduces pressure to rapidly scale a business that has served just 330 clients since 2018.
While the pivot toward “non-traditional” funding sources such as local and international real estate investment funds demonstrates financial innovation and an awareness of liquidity constraints in Egypt’s banking sector, it may, at the same time, expose the company to funding volatility and investor return expectations that could strain margins.
Moreover, targeting EGP 3 billion in business volume by 2026 requires not only capital but also robust risk management in a market where mortgage penetration remains structurally low due to affordability and macroeconomic pressures.
Ultimately, Qasatli’s IPO narrative is compelling, anchored in market opportunity and regulatory legitimacy. Yet, the company must demonstrate scalable underwriting capacity, sustainable funding structures, and consistent portfolio performance to convert ambition into durable market leadership.
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