The first half of 2014 witnessed an 800% increase in bourse listed companies’ capital, Egyptian Stock Exchange (EGX) Chairman Mohamed Omran said Wednesday. Increases during the first half of the year equates to the total increased achieved in 2013 and four times the increase achieved in 2012, the EGX chairman noted.
“The first half of the year 2014 has witnessed a big increase in the public offerings with about EGP5.5bn, which is more than the total increases achieved during 2013, and more than 430% from the total increases achieved during the year 2012,” an official statement from the Exchange said.
Omran added that this increase reflects the optimism of companies and investors in the future of the Egyptian economy.
Omran also said that “simplified procedures and [a reduction in] the listing approval duration to 24 hours in some cases” accounted for the progress witnessed in the bourse.
Following the 25 January Revolution, the Egyptian bourse experienced major fluctuations. In 2013, six companies exited that capital market, which included one of Egypt’s largest-listed companies, Orascom Construction Industries (OCI). Delisted companies also included Raya, Egyptian for Tourism Resorts (EGTS), Citadel Captial (CCAP), Alshams Company (ELSH) and the National Real Estate Bank for Development (NRPD).
Between 2009 and 2011, 30 companies were listed on the stock market with a total value of EGP5.7bn. Eight companies contributed in 2011 EGP 0.5bn to those figures. Listings surged in 2012 to total 11 companies with a value of EGP 2.5bn only to drop in 2013 with nine companies entering the stock market with a total value of EGP 0.2bn.
During the fiscal year (FY) 2013/2014, the capital market experienced a surge in public offerings for capital increases to record EGP 10bn. This figure is more than 8 times the increases achieved during FY 2012/2013.
The first half of the current year, however, witnessed the first public offering since the uprising for cement company Arabian Cement.
In May, shares of Arabian Cement jumped from EGP9 to EGP10.39 on its first trading day, with a trading volume of 17.3m shares. The total value of shares traded was $179.8m.
The company’s CEO Jose Maria Magrina said: “Offering shares on the Egyptian stock exchange is a positive step towards increasing the company’s capital in the future, and it is an opportunity that was not available before.”
Domty Company for Foods and Production is studying the possibility of entering the market.