EGX starts trading on CI Capital, stock soars 21% at early minutes

CAIRO - 30 April 2018: The Egyptian Exchange (EGX) stared Monday trading on CI Capital Holding’s under the symbol “CICH”, and the stock skyrocketed by more than 21 percent at the first minutes of trading.

The private offering of CI Capital was oversubscribed 6.1 times, reaching LE 1.56 billion ($88.1 million), determining the final price for the issuance of the company’s shares at LE 7.70 per share.

The IPO has allocated 22.5 million shares at a total value of EGP 173.7 and it has been oversubscribed 29.5 times.

Egyptian investment bank CI Capital had previously set an indicative price ranges between EGP 7.29 and 8.26 per share to a stake of the company’s shares on the EGX.

“The EGX management is always working on attracting more strong companies from various sectors willing to grow and further expand to be listed.” This diversification of the EGX promotes the strength of of Egypt’s capital market and its contribution to the economic growth,” EGX Chairman, Mohamed Farid said Monday.

Farid added that foreign investors’ high demand underscores great confidence from global financial institutions and investment funds in investment climate in Egypt under the recent fiscal, monetary and legislative reforms which promoted confidence in the Egyptian economy significantly.

“Enterprises’ offerings on the EGX strengthens the role of the non-banking financial sector in diversifying financing sources for the comnpanies expansions, which supports the government’s economic and socail development plan,” Minister of Public Enterprise Khaled Badawi said.

He noted that the state-IPO program will activate and further deepen the stock market and increase its contribution in the gross domestic product (GDP).

Chairman and CEO of CI Capital Group, Mahmoud Attallah said that the management of his company is looking is keen to continue its business development and complete its expansion strategy to maximize the value for all shareholders. “Starting trading on the EGX is a step that will accelerate the company’s growth pace.”

Expressing his happiness about the success of the offering, Co-CEO of C ICapital Hazem Badran said: “We are very optimistic about the success of the offering that will enable the company implement its planned expansion strategy.”

Badran also highlighted that the strong participation of global financial institutions reflects their positive oulook for Egypt’s capital market as one of the most important regionla markets.