Arabian Cement to Begin Trading on Egypt Bourse Next May 18

Arabian Cement announced that its common stock will begin trading on the Egyptian stock market on Sunday, May 18, 2014.

The opening price will be the same as the placement execution price at 9 Egyptian pounds ($1.28) per share.

Egypt-based Arabian Cement Company’s initial public share offer, the first major listing on the Egyptian Exchange (EGX) since the 2011 political uprising, was 18.5 times oversubscribed.

The offer raised EGP 767 million ($108.7 million) with 85.2 million shares sold in the offer on Wednesday, placed at 9 Egyptian pounds ($1.28) per share.

On Tuesday, EGX Chairman Mohamed Omran told Reuters the oversubscription reflected traders’ appetite for any new stocks in the market, adding that the Cairo bourse was “ready to accept more offers”. In addition, Hesham Gohar, managing director for investment banking at CI Capital – which was co-bookrunner on the offer alongside EFG-Hermes – said the oversubscription “reflects the confidence of investors, especially foreigners, in the Egyptian economy.”

Arabian Cement has a production capacity of 5 million tones a year and a market share of around 8 percent.