Arab Developers Holding, listed on the Egyptian Exchange (EGX) under the ticker ARAB, announced that its Board of Directors has approved an increase in the company’s issued capital from EGP 1.39bn to EGP 2.39bn – an increase of EGP 1bn.
The capital raise will be executed through a rights issue to existing shareholders, with the subscription rights traded separately from the original shares in accordance with Article (48) of the EGX listing rules.
The increase will be implemented through the issuance of 10 billion ordinary shares at a nominal value of EGP 0.10 per share, in addition to issuance expenses amounting to 1% of the nominal value. The offering will be extended to existing shareholders in proportion to their current holdings, with the rights traded independently on the exchange.
According to the company, the EGP 1bn capital increase – the largest in its history – will be used to finance its ongoing development and investment plans, expand its real estate portfolio, and support future sales growth. The proceeds are expected to contribute to sustainable revenue expansion and improved profit margins across the group’s projects.
Ayman bin Khalifa, Group CEO of Arab Developers Holding, stated that the board’s decision to approve the capital increase reflects strong confidence in the resilience of Egypt’s capital market and its capacity to support the growth ambitions of listed companies.
He added that the additional capital will enable the company to accelerate construction progress across its ongoing developments and enhance delivery rates, which will in turn have a positive impact on revenue growth and profitability.
Following the board’s decision, the company’s Chairperson will convene an Extraordinary General Assembly Meeting (EGM) to approve the subscription procedures and amend Articles (6) and (7) of the company’s Articles of Association in accordance with the outcome of the rights issue. The process will be carried out in line with the regulatory requirements of the Financial Regulatory Authority (FRA) and the Egyptian Exchange.
