Edita sets Price Range for Secondary Share Issue on Egypt Bourse

Egyptian foodmaker Edita has set an indicative price of between 16.80 and 18.50 Egyptian pounds per share for a secondary public offering, it said on Monday.

The company said earlier this month that major shareholders would put 30 percent of its ordinary shares on the Egyptian stock market. Its statement said the final price could be revised up or down.

It plans an institutional offering of ordinary shares on the Egyptian bourse and for global depository receipts (GDRs) to be listed in London. Each GDR will represent five ordinary shares.

There would also be a separate domestic offering of ordinary shares, the company has said.

Sources told Reuters earlier this month that Edita was seeking to raise 2 billion Egyptian pounds ($262 million) from its offer on the Cairo bourse, and that trading was expected to begin in April.

A flurry of mergers and rights issues have boosted activity on the Cairo exchange, which had struggled to win investor confidence during four years of political and economic turmoil since the Arab Spring uprising.

Egypt’s government last year launched long-delayed reforms aimed at luring back foreign investors and shoring up growth while cutting a ballooning budget deficit. This weekend it hosted a high-profile investment summit where billions of dollars of investment were pledged.