Egyptian dairy and juice maker Juhayna Food Industries said on Wednesday it was still deciding whether to go ahead with its initial public offering (IPO) after a fire in one of its factories caused major losses.
The fire that broke out last Thursday at Juhayna’s "Egyfood" factory on the outskirts of Cairo damaged buildings and equipment. Production has been halted at the factory, which cost LE 300 million ($54.13 million).
Asked about the IPO, Associate Director Heba Thabet said: "A decision is not taken yet about the IPO. We are at a very early stage of a recovery process that comes as a top priority for the time being."
"There is a board meeting next week, and accordingly the IPO state will be determined and declared," she told Reuters.
A number of firms are considering IPOs on the Egyptian Exchange, where shares, recovering from the global credit crunch, have surged to their highest levels since September 2008. The last IPO on the Egyptian bourse was in mid-2008.
The Juhayna factory, which made yogurt and yogurt-based products, represented 18 percent of Juhayna’s production capacity.
The firm had not calculated the loss, but estimated it at 85-90 percent of the factory’s value, Thabet said.
Juhayna Food Industries makes milk, dairy products and juices, with export markets across Africa and the Middle East. Its clients include McDonald’s Corp, the firm’s website says.