First phase of Palm Hills’ offering oversubscribed by 80.7%

CAIRO – 19 November 2018: Palm Hills Development Company (PHDC) announced that the first phase of the offering to increase its capital for shareholder’s equity was oversubscribed by 80.71 percent, with a total of LE 1.26 billion, including issuance expenses.

The company clarified in a filing to the Egyptian Exchange (EGX) that the subscription reached LE 1.24 billion, excluding issuance expenses of LE 18.6 million.

This offering comes as part of the company's process to increase its capital by about LE 1.54 billion, distributed over 769 million shares, with a nominal value of LE 2 per share.
According to the filing, the company will announce the second phase of the initial public offering (IPO) after receiving the official approvals.

The shares will be issued in a form of subscription rights within the authorized capital of LE 10 billion, the company stated.

The company targets to increase the issued capital to LE 6.16 billion from LE 4.62 billion after the IPO is completed.

In September, the extraordinary General Assembly of Palm Hills Development Company approved the increase of issued capital by LE 1.5 billion by inviting shareholders to subscribe.

The board of directors also agreed to increase the authorized capital from LE 6 billion to LE 10 billion and the issued capital from LE 4.6 billion to LE 6.16 billion.

On August 6, EFSA approved thatthe company starts the procedures to increase its issued capital.

The increase is set to be achieved through inviting shareholders to subscribe through 769.6 million shares at a nominal value of LE 2 per share, in addition to issuing expenses.

Palm Hills accomplished profits of LE 439.9 million during the first six months of 2018, compared to LE 349.3 million during the same period of 2017.

Palm Hills operates within the real estate sector focusing on real estate development.

It has 25 subsidiaries operating across the United Kingdom, Singapore, Egypt and Saudi Arabia. Palm Hills is based in Giza, Egypt and was established in January 2005.