EGX reopens deals market to cancel purchase orders registered on Ghazl Al-Mahalla's shares

CAIRO - 5 September 2022: The Egyptian Stock Exchange (EGX) decided Monday to reopen the private deals market to allow the possibility of canceling purchase orders registered during the subscription period for the shares of Ghazl El-Mahalla Football Company (not listed on the stock exchange).

 

The EGX’s decision comes after the offering of Ghazl Al-Mahalla football was not covered, as the total quantities of orders registered in the private deals market in the initial public offering (IPO) amounted to about 17.6 million shares, with a coverage rate of 17.96 percent.

 

The prospectus included an increase in the issued capital of Ghazl El-Mahalla Football Company from LE 102 million to LE 200 million in the first market, for the number of 98 million shares of the company's capital at a price of LE 1.02 per share.

 

It stated that in the event that the offering was not covered within the specified period, each subscriber may, in this case, request a refund of the subscription amounts that he paid, and the company is obligated to refund these amounts in full, including the issuance expenses upon request, within seven working days in accordance with Article 28 of the Executive Regulations of the Capital Market Law 95 of 1992.

 

In the event that the refund period expires and no refund requests are received, the value of the subscriptions shall be transferred to the capital account mentioned in the prospectus.

 

On Sunday, June 12, Ghazl El-Mahalla Football Company started the IPO of shares to increase the company’s issued capital from LE 102 million to LE 200 million, for the number of 98 million shares of the company’s capital at a price of LE 1.02 per share.

 

The Ministry of Public Business Sector completed the establishment of Ghazl El-Mahalla Football Company in January 2021, to become the first Egyptian joint stock company specialized in football activity, after separating the football activity at Ghazl El-Mahalla Club affiliated to Misr Spinning and Weaving Company in El-Mahalla El-Kubra - one of the companies of the Ministry of Public Business Sector - in an independent entity bearing the name "Ghazl Al-Mahalla Football Company".

 

The capital of the Mahalla Football Company consists of an in-kind share of the Misr Spinning and Weaving Company in Mahalla, about LE 65 million, in exchange for the right to use the name and stadium for a period of 20 years. 

 

The capital was increased by LE 37 million from Egyptian and Gulf investors and institutions in a private subscription, bringing the paid-in capital to LE 102 million, before offering the increase by LE 98 million pounds for public offering.