URGENT: Egypt's annual core inflation hits 11.3% in Sept – CBE    Sisi invites Trump to Egypt to sign Gaza peace deal if talks succeed    Egypt's acting environment minister heads to Abu Dhabi for IUCN Global Nature Summit    Egypt's oil sector posts $598.3m net FDI inflow in FY2024/25 – CBE    Egypt yet to decide on fuel price increase — PM    Egyptian Open Amateur Golf Championship 2025 to see record participation    Cairo's Al-Fustat Hills Park nears completion as Middle East's largest green hub – PM    Al-Sisi reviews education reforms, orders new teacher bonus starting November    Egypt's Cabinet approves new universities, church legalisations    Investment Ministry, Future of Egypt Authority discuss strengthening supply chains, strategic commodity procurement    Saint-Gobain Egypt targets doubling exports to Africa to €120m annually    Egypt plants over 18,000 trees in Cairo, Delta in '100 Million Trees' initiative    Egypt's UPA launches new version of MedIQ medical procurement system    Egypt urges Netherlands to increase investment, stresses Nile water security    Egypt's Foreign Minister, German counterpart hold political consultations in Cairo    Egypt's Sisi congratulates Khaled El-Enany on landslide UNESCO director-general election win    URGENT: Egypt's Khaled El-Anany unanimously elected UNESCO director-general    Syria releases preliminary results of first post-Assad parliament vote    Al-Sisi reaffirms Egypt's military readiness on 52nd anniversary of 1973 victory    Karnak's hidden origins: Study reveals Egypt's great temple rose from ancient Nile island    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    From the Ashes of Dynamite to the Light of Nobel    A Woman's Victory Shakes Global Markets    Egypt reviews Nile water inflows as minister warns of impact of encroachments on Rosetta Branch    Egypt's Al-Sisi commemorates October War, discusses national security with top brass    Egypt screens 22.9m women in national breast cancer initiative since July 2019    Egypt's ministry of housing hails Arab Contractors for 5 ENR global project awards    Egypt drug regulator, Organon discuss biologics expansion, investment    A Timeless Canvas: Forever Is Now Returns to the Pyramids of Giza    Egypt aims to reclaim global golf standing with new major tournaments: Omar Hisham    Egypt to host men's, juniors' and ladies' open golf championships in October    Egyptian Writers Conference announces theme for 37th session    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Emaar Misr's IPO buyback offer heavily oversubscribed
Published in Ahram Online on 03 - 08 - 2015

Shareholders of Egyptian property developer Emaar Misr submitted a total of 487.317 million shares to be bought back by the company on Monday, more than five times the 90 million shares Emaar Misr agreed to re-purchase a month after the company's stock began trading on the Egyptian bourse.
Emaar Misr, a unit of Dubai's Emaar Properties, sold about 13 percent of its shares and raised 2.28 billion Egyptian pounds ($291 million) in an initial public offering in June which priced at 3.8 Egyptian pounds per share. It was the largest offering on the Egyptian exchange since 2007.
The company offered to use its price stabilisation fund to buy back 15 percent of the shares at the initial IPO price 30 days after the shares went into circulation, which was on July 5.
The stock has performed poorly since its flotation, with the price closing trade on Monday at 3.43 Egyptian pounds, up 0.3 percent on the day but 9.74 percent below its IPO price.
The valuation of Emaar Misr was "a bit on the high side" with the flotation affected by the quieter market during the month of Ramadan, said Harshjit Oza, property and banking analyst at Naeem Brokerage.
"Here in Egypt about 60 or 70 percent of investors are retail investors and their goal is just to make money quickly, so if they are not happy with the IPO performance they would like money returned. So this is a way to keep retail investors happy," he said of the buy-back offer.
"I think ... they were jumping ahead a little because other [property development] companies such as Palm Hills and SODIC are further along in developing their projects than them," said Angus Blair, chairman of business and economic forecasting thinktank Signet.
Also, two senior executives, Chief Development Officer Walid El-Hindi and Chief Investment Officer Ahmed Fathallah, resigned on Sunday "to pursue new opportunities", Emaar Misr said in an emailed statement on Sunday.
However, Oza said the company's share price performance and the eagerness of investors to sell back stock did not truly reflect prospects for the company, which was still "doing quite well."
"Fundamental factors such as growing urbanization, population growth, increasing number of marriages, investors' urge to buffer wealth against the Egyptian pound's depreciation and inflation, continue to drive real estate demand and prices," Naeem Brokerage said in a research note on the company which was issued in mid-July.
"This cannot be perceived as a slowdown in the property market or the stock market," said Oza.
http://english.ahram.org.eg/News/136889.aspx


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