The first Trading session in the new year witnessed the execution of a public offering with more than 33 Million shares, representing 15% of Orascom Hotels and Development company with almost LE 506 Million value as a step to reconcile the company’s status to comply with the Egyptian Exchange (EGX) listing rules. The offering has been implemented on two categories; the first with 5 % of the total equity was allocated to the public and the second with 10% of the total equity was allocated to the shareholders with financial solvency.
The public offering was covered by 4 times, which is considered as a sign to the increased market liquidity and investors’ demand for new public offerings. It’s expected that trading on the company’s shares will start as of Tuesday 06.01.2015 trading session without being restricted by price limits or temporary suspension mechanisms during that trading session only, then as of the following session the company will be traded according to the price limits applied in the Egyptian market.
From his part, Dr. Mohammad Omran, EGX chairman said that this public offering represents a promising start for the year 2015 with regard to IPOs and capital increase activity. Furthermore he stated ” We have performed intensive efforts to persuade the company to continue in the market and to reconcile its situation”, stressing that attracting companies to list in EGX and helping them to obtain funding is the primary role of the stock market, therefore to benefit the economy in general and to incre