Arabian Cement Company’s shares finally started trading today with the presence of the Spanish ambassador in Cairo, the Egyptian bourse chief and key representative of the company as well.
Fidel Sendagorta del Campillo Spanish Ambassador in Cairo, Dr. Mohamed Omran, Chairman of the Egyptian Exchange (EGX), and a delegation from Arabian Cement Co headed by chairman Generoso Bertolin, inaugurated the first day of trading of Arabian Cement company’s stocks by ringing the bell of the trading session today by the company’s Chairman.
The IPO of Arabian Cement was successfully 18.5 times oversubscribed as the total amount of purchase orders reached 460.5 million shares, while the volume of shares offered for sale was approximately 24.9 million shares. Accordingly, the allocation rate reached 5.4%.
Egypt-based Arabian Cement Company’s initial public share offer is the first major listing on the Egyptian Exchange (EGX) since the 2011 political uprising.
In this respect, Dr. Omran, EGX Chairman mentioned that “The success of the subscription of the first IPO in EGX since 4 years reflects the return of the investors’ trust in the stock market and its listed companies. This success is a result of the efforts of regulatory bodies to encourage investment and boost the trust of investors. The market indicators confirm that it is currently ready for more successful IPOs to convince Egyptians to mobilize their savings in projects that create jobs and add to the productivity of the national economy.”
Moreover, Jose Maria Magrina- CEO of Arabian Cement company commented on the first trading session of the company’s stocks saying “We are extremely thrilled with the start of trading on our stocks in the EGX. Having the initial public share offer 18.5 times oversubscribed reflects the position of Arabian Cement in the Egyptian market, as well as the confidence of Egyptian and Foreign investors in our stock. At the same time, this IPO is a testament to our strong roots in Egypt, supporting our market position during the coming period.”
The company’s issued capital amounts to 757.5 million Egyptian pounds, 60% of which is owned by the Spanish company Cementos La Union and the remaining 40% owned by a group of Egyptian investors. The floated percentage belongs to Egyptian investors, while the Spanish company is keeping all its percentage of shares owned in the company.