Emaar Misr shares decline to EGP 3.71 per share

Emaar Misr’s shares were traded at EGP 3.71 per share, lower than the price of their initial public offering (IPO), on the second day of Egyptian Stock Exchange (EGX) trading.

Trading on the construction company declined at the end of trade on Sunday, giving up its gains in the morning session to fall by 2.4% to EGP 3.71 per share.

Emaar Misr’s shares dropped by 7.87% during the first hours of trading on the second EGX session to reach EGP 3.63, compared to the end of yesterday’s session at EGP 3.94.

The shares declined amid active trading exceeding 77m shares, at a total value of more than EGP 303.9m, and through more than 6,927 transactions.

According to market data, leading shares significantly dropped during the day, which negatively affected the performance of the market. The decline in the main stock index EGX-30 declined by 4.23%.

The EGX-70 index encompassing small- and medium-sized enterprises declined by 3.08%, while the broader index EGX-100 declined by 2.81%.

The market capitalisation of listed shares in the stock market lost about EGP 11.95bn during Monday trading, driven by sales transactions by both foreign and Arab investors, while Egyptians transactions tended towards purchasing.

In February, the EGX announced that Emaar Misr formally requested listing its shares on the stock market. The company offered 600m shares, around 13% of the company’s capital, with the total value of EGP 2.3bn.

Approximately 85% of the shares were offered publicly, whilst the remaining 15% were offered to institutions at EGP 3.8 per share. The firm’s current issued capital was evaluated at EGP 4.019bn, and with the increase it is set to reach EGP 4.619bn

Emaar Misr identifies itself as “the largest foreign direct investor in Egypt’s real estate sector, with an investment portfolio of EGP 53bn”. The company’s land portfolio is about 15.4m sqm, with four projects that include Uptown Cairo, Marassi, Mivida, and Cairo Gate.

Source: Daily News Egypt