The Egyptian Exchange (EGX) celebrated the successful completion of the horizontal demerger of Arabia Investments Holding into two separate listed entities with a “Ring-the-Bell” ceremony to mark the start of trading.
The ceremony was led by Ahmed El Sheikh, Executive Chairman of EGX, in the attendance of Heba El Serafi, Vice Chairman of EGX, alongside senior executives from Arabia Investments Holding and Arabia for Investment and Development.
The event was attended by Hazem Mostafa, Vice Chairman of Arabia Investments Holding, members of the Boards of Directors of both companies, managing directors of subsidiaries, financial advisors, auditors, and senior EGX officials.
In his remarks, El-Sheikh congratulated the company’s management and shareholders on the successful completion of the demerger, reaffiring EGX’s commitment to supporting initiatives that enhance listing and public offering activity in line with regulatory frameworks and listing rules.
He further emphasized EGX's dedication to simplifying procedures, enhancing governance practices, improving informational efficiency and the quality of listed securities, supporting newly listed companies and diversifying sectors represented on the market.
El-Sheikh highlighted that these efforts aim to foster a more attractive environment for listings and offerings, thereby strengthening the overall stability and integrity of the Egyptian capital market.
From his side, Hazem Mostafa expressed gratitude to EGX management and conveyed the Board’s appreciation for the successful completion of the demerger. He explained that the restructuring was designed to maximize shareholder value by establishing two independent listed companies, each with a clear market valuation. This strategic step is expected to broaden the investor base, enhance liquidity, and provide diversified financing opportunities, including capital increases and Sukuk issuance, in line with the regulations of the Financial Regulatory Authority (FRA) and EGX listing and delisting rules.
Mostafa further noted that the demerger strengthens the financial position of both entities, particularly within non-banking financial services, by ensuring capital adequacy requirements, maintaining liquidity, and supporting equity and reserves. He added that the restructuring enhances the companies’ ability to adapt to financial technology developments, strengthen subsidiaries’ capital bases, and sustain growth and performance. All disclosures, including standalone and consolidated financial statements, were provided in full compliance with EGX’s listing and disclosure requirements.
The company confirmed that the demerger forms part of its long-term restructuring strategy aimed at driving sustainable growth, attracting qualified investors, and maintaining transparency across all operations.
Demerger and Trading Details:
- Demerger Company: Arabia Investments Holding (AIH)
- Sector: Non-Banking Financial Services (leasing, consumer finance, factoring, securitization)
- Issued Capital: EGP 296,044,452.62
- Issued Capital: EGP 171,394,156.78
