Orascom Hotels and Development (OHD) offered 33m stocks in the Egyptian stock market at the value of EGP 506m. The offering was oversubscribed four times and the official trading on the stocks is expected to start on Tuesday.
During the first trading sessions the OHD stocks will not be restricted by price limits or pausing mechanism, the Egyptian Exchange (EGX) announced. It added that starting for the second trading session for the stocks; the trading will be regulated by the price limits listed in the market.
Earlier last month, Orascom Development Holding, the major shareholder of OHD announced that it would offer 15% of its stocks in OHD through a private and a public placement in the Egyptian stock market.
“The first tranche of maximum 10% is open for the qualified investors through a private placement with a minimum ticket size of EGP 5m,” the company said.
“The second tranche (public offering) of a minimum 5% will be offered through the OPR [overnight policy rate] on the EGX screens at a price of EGP 15.2/share, which is at a discount of 50% from the midpoint of the independent financial adviser (IFA) value range of EGP 29.6-31.2/share,” the company added.
In August, Orascom Development Holding announced that it registered a net profit of CHF 31.5m ($34.4m), which is deemed the first biannual net profit since 2010.
The EGX annual report stated that the main index EGX-30 registered revenues of 32% average, making it one of the best growing markets over the past year. The volume of trade reached 57bn stocks, around double the trade volume recorded in 2013 and the largest in the capital market’s history.
The value of trade totalled some EGP 189bn, the highest since 2010. In 2013, the value of trade was around EGP 102bn. The report added that during the past three years, the market grew by 102%.
Prior to the end of 2013, the EGX listing committee approve the listing of the first Exchange Traded Fund (ETF) certificates with an initial value of EGP 10m.
“ETFs are similar to traditional investment funds in being formed of a set of securities traded in the stock exchange, but the main difference is that ETFs are committed to follow a certain index performance (represented in the EGX 30 index in this case) and so its performance is close to the index performance,” the EGX said in an official statement.
The EGX highlighted that, just like other stocks, the ETFs’ trading will be allowed at any time during the trading session through brokerage firms.
The highest value of trade of bonds in the history of the EGX was also registered in 2014, totalling EGP 67bn.
Last year also witnessed the largest number of companies listing since 2010, with 13 new companies being listed in the main index and the Nilex index. The capital for the companies listed during the past year, amounted to approximately EGP 1.9bn; ten times more than the capital of companies listed in 2013.