First phase of Palm Hills’ offering oversubscribed 80.7%

Egypt’s Palm Hills Development said on Monday the first phase of the offering to increase its capital for shareholder’s equity was oversubscribed by 80.71 percent to 1.26 billion Egyptian pounds ($70.1 million), including issuance expenses.

The subscription reached 1.24 billion pounds, excluding issuance expenses of 18.6 million pounds, the company said in a bourse filling.

This offering comes as part of the company’s process to increase its capital by about 1.54 billion pounds, distributed over 769 million shares, with a nominal value of 2 pounds per share.

According to the filing, the company will announce the second phase of the initial public offering (IPO) after receiving the official approvals.

The shares will be issued in a form of subscription rights within the authorized capital of 10 billion pounds, the company stated.

The company targets to increase the issued capital to 6.16 billion pounds from 4.62 billion pounds after the IPO is completed.

In September, the extraordinary General Assembly of Palm Hills Development Company approved the increase of issued capital by 1.5 billion pounds by inviting shareholders to subscribe.

The board of directors also agreed to increase the authorized capital from 6 billion pounds to 10 billion pounds and the issued capital from 4.6 billion pounds to 6.16 billion pounds.

On August 6, EFSA approved thatthe company starts the procedures to increase its issued capital.

The increase is set to be achieved through inviting shareholders to subscribe through 769.6 million shares at a nominal value of 2 pounds per share, in addition to issuing expenses.

Palm Hills accomplished profits of 439.9 million pounds during the first six months of 2018, compared to 349.3 million pounds during the same period of 2017.

Palm Hills, which operates within the real estate sector focusing on real estate development, has 25 subsidiaries operating across the United Kingdom, Singapore, Egypt ,and Saudi Arabia.