In Week, Egypt Stocks gain EGP3.6 billion on Orascom, Emaar Listings
In one week of trading, Egypt’s stocks posted gains worth 3.67 billion approximately (US$480.8 million).
The Egyptian stock Exchange’s benchmark EGX30 index surged by 2.6 percent in a week, with an increase of 241.97 points, ending Thursday’s transactions at 9575.98 points, versus 9334.01 points at the end of a week earlier.
The main gauge index registered its highest point on Thursday closing at 9575.98 points, whereas its lowest point recorded on Sunday at 9283.59 points.
In addition, the mid- and small-cap index, the EGX70 edged up in a week by 1.4% closing at 566.52 points during Thursday’s session, compared to 558 points at the end of a week earlier.
The price index, EGX100 also hiked by 1.5% finishing at 1131.47 points during Thursday’s session, from 1114.42 points at the end of a week earlier.
Market Cap
Furthermore, the market capitalization closed at EGP 514.827 billion last Thursday, compared to EGP 511.156 billion at the end of a week earlier.
Turnovers: higher
Through the week, the trading volume hit around 490 million securities, compared to 588 million. For the traded value, it reached EGP 5 billion against EGP 4.3 billion a week earlier.
Market Remarks:
– Egypt’s Edita Seeks US$D262mn in Initial Offering -Sources
Egyptian foodmaker Edita said on Monday it would put up to 30 percent of its ordinary shares on the Egyptian stock market in a secondary public offering.
The company is making a combined offering that includes an institutional offering of ordinary shares on the Egyptian bourse and global depository receipts (GDRs) to be listed in London.
There would also be a separate domestic offering of ordinary shares, it said in a statement.
“Edita has received permission to list its shares on the EGX (bourse) under the symbol EFID.CA,” the company said.
It added that shareholders were meeting to approve the combined offering.
Market sources later told Reuters on Monday that the firm would seek to raise 2 billion Egyptian pounds ($262 million) in the initial offering on the Cairo bourse.
The sources said trading was expected to start from early April.
– Edita to list 30% of Ordinary Shares in Secondary Offering
Later on Monday, Edita said it would put up to 30 percent of its ordinary shares on the Egyptian stock market in a secondary public offering.
The company is making a combined offering that includes an institutional offering of ordinary shares on the Egyptian bourse and global depository receipts (GDRs) to be listed in London.
There would also be a separate domestic offering of ordinary shares, it said in a statement.
“Edita has received permission to list its shares on the EGX (bourse) under the symbol EFID.CA,” the company said.
– Orascom Construction offers 11% of Shares in $185 mln IPO
On Wednesday, Orascom Construction announced plans to offer 11 percent of its shares on the Cairo bourse to raise 1.41 billion Egyptian pounds ($185 million).
The company is being spun off from OCI NV, which will retain its fertiliser and chemicals operation. The construction business is seeking a dual listing on the Egyptian stock market and NASDAQ Dubai.
In a statement published in Egypt’s Al-Ahram newspaper, Orascom said the stock would be offered in two tranches, with the first closing on Thursday.
The company said it would issue a total of 12.984 million shares to both retail and institutional investors at a price of 108.71 Egyptian pounds per share ($14.26).
Orascom did not give a time for the second tranche but a source close to the matter told Reuters that the door would close for orders on both tranches on Thursday.
The firm expects its new shares to start trading on the Egypt exchange between March 9 and March 11.
– Egypt Bourse approves Listing of Emaar, Orascom Construction
Alson on Wednesday, Egypt’s stock Exchange announced that its securities listing committee approved the listing of Emaar Real Estate Development and Orascom Construction with EGP 878 million and $105 million capital, respectively.
This would mark the biggest two share listings on Egypt’s bourse in almost five years.
Orascom Construction is the first foreign firm to be dual listed on the Egyptian Exchange (EGX) as shares and not as Egyptian Deposit Receipts (EDRs) in nearly twenty years, as it already listed on NASDAQ Dubai, according to the EGX statement.
From his part, EGX Chairman Mohamed Omran said the listing of the two companies represents a major step taken ahead of Egypt’s upcoming Economic Conference, which will take place on March 12-15.
The listings also give strong signals to the local and foreign investment community for the confidence of companies in the local economy and in available liquidity that will fulfill their plans for expansions and capital hikes over the coming period, Omran noted.
He stressed that the dual listing of Orascom Construction reflects Egypt’s competitive market.
