Arab Developers Holding assigned Solid Capital for Financial Advisory as an independent financial advisor to evaluate one of the group’s subsidiaries, to study the possibility of offering a stake of that company’s shares for public subscription on the Egyptian Exchange.
Daily News Egypt learned that the target subsidiary is Porto October, which owns the Neom October project, one of the company’s largest projects.
Arab Developers owns about 88.2% of Porto October, with a turnover worth EGP 820m, according to sources.
Porto October achieved revenues of EGP 105m through the sale of 6 units in June 2022, while the company’s debt from the purchase of land is about EGP 70m in the short-term and EGP 116m in the long-term.
Meanwhile, the sales of Arab Developers Holding increased during the first half of this year by 38%, as it achieved contractual sales of EGP 896m up from EGP 650m during the comparable period in 2021.
However, the profits of Arab Developers decreased by 79% to EGP 15m in June 2022, compared to EGP 72m in June 2021.
The company explained in a statement that the current global events cast a negative shadow on the costs of the activity, and the company is working to contain the increase in costs by boosting sales levels and accelerating the pace of delivery to reach delivery rates higher than last year.
The company sold 277 units during the first half of this year, with a total area of 48,000 square meters, compared to selling 116 units with a total area of about 16,000 square meters, during the comparative period, while the delivery rate of units reached 165 units with a total area of 31,000 square meters, compared to about 103 units with an area of 24,00 square meters, in the same period last year.
The company aims to achieve total sales of EGP 2.8bn, and inject investments of about EGP 1.5bn during the current year to speed up the construction and delivery process. The company also targets revenues between EGP 3.6bn and EGP 4.1bn for the next two years in a row.