The general assembly of real estate company Palm Hills Developments approved increasing the company’s capital by EGP 1.648bn, from EGP 2.69bn to EGP 4.34bn, the company said in an official statement.
“The public subscriptions notice will be published as soon as possible post-finalising official procedures,” the company said.
The company is planning on issuing 824m shares in the stock market at EGP 2 per share, in addition to 3.5 piastres as issuance expenses.
The company’s plan to increase its capital is due to a desire to expand in both the residential and commercial sector, the Co-CEO of Palm Hills Developments Tarek Abdel Rahman said.
Abdel Rahman added that this expansion allows “reaping distinctive returns to the shareholders, by developing new projects or diversifying and increasing the company’s current commercial land portfolio, which now exceeds 300,000 sqm”.
Abdel Rahman mentioned that the company is planning to increase its investment to provide 200,000 job opportunities during the next five years.
In November, UAE-based Aabar Investments PJS acquired a 5.1% stake in Palm Hills. The Egyptian real estate company said that the deal reflects the Egyptian real estate sector’s ability to attract regional as well as international investment.
Following the 25 January Revolution, the company faced some hurdles regarding land ownership. In June, the company settled its dispute with the cabinet and the New Urban Communities Authority, resuming its activities at two sites in Sheikh Zayed City and 6th of October City.
