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The Egyptian Exchange (EGX) began training trading on Monday 1 October, the 225 company of its main main, namely Cairo for Investment & Real Estate Development, which will be traded under the symbol "CIRA” at the presence of Mr. Mohamed Farid, EGX Chairman, and the company’s senior management.
The private placement and IPO was executed on 207.2 million shares representing 37.8% of the company's capital at a price of EGP 6 per share with a total value of EGP 1.2 billion.
The IPO shares were 14.5 million shares representing 7% of the offered of shares which is approximately 2.6% of the company’s issued shares. The private placement shares reached 192.73 million shares representing 93% of the offered shares representing 35.2% of the company’s issued capital.
The IPO was oversubscribed by 18.87 times, where allotted shares’ is 5.3%. The total number of shares requested reached 273.8 million shares, with a total value exceeding EGP 1.64 billion. The private placement was covered 10.36 times for 192.7 shares of a value of EGP 1.16 billion was where the total bids amounted to EGP 10.89 billion.
The non-Egyptians "Arabs and Foreigners" represented 77%, while the Egyptians represented 23% of the total IPO and private placement.
Mohamed Farid, EGX Chairman, said that capital markets play an important role in accumulating the necessary savings to finance the process of the economic growth that is based on the expansion of companies’ operating in the various economic fields and activities.
Farid said that the high demand from Arab and foreign investors represented 77% of the total IPO reflecting the confidence of the international institutions and investment funds in the Egypt’s investment climate after the recent reforms on the financial, monetary and levels.
Farid added that EGX management always works on attracting strong companies planning to expand from the various sectors. "The diversification of shares’ sectors strengthens the market and contributes to economic growth."
He also stated that the business model indicates the attractiveness of the educational sector and the opportunity that the Egyptian stock exchange offers to contribute in achieving Egypt's developmental vision and objectives. We also eager to attract companies in various sectors where high priority fields such as education, health and transportation.
EGX Chairman announced the coordination with Cairo for Investment and Real Estate Development senior management to sign an MOU to spread the financial culture and raise the level of financial and investment awareness where about 14 thousand students will benefit; this is supporting Egypt’s efforts to enhance financial inclusion.
Cairo for Investment and Real Estate Development owns 19 schools all over Egypt’s governorates, with 22,000 students in addition to Badr University, which workforce is 4127 employees.
For his side, Dr. Hassan Al-Qala, CIRA Chairman, said that the commencement of trading on the company’s shares accelerates the pace of business growth, stressing his aspiration to continue to develop the company's business and continue its expansion strategy.
Mohamed Al-Qala, CIRA CEO, said that his company aims at investing about EGP 1 billion over the next three years, while the enlarging the company's business size to four times over the next seven years.
He finalized, "The strong participation of foreign and Arab investors in this IPO reflects the Egyptian capital market’s positive image as one of the most important regional markets."
