Subscription rights of property developer Palm Hills Development (PHD) (PHDC.CA) started trading today, November 4 to continue till December 2, 2013. The securities listing committee in the Egyptian Exchange (EGX) had approved on October 23 the listing of subscription rights separately from original shares. A total of 300 million subscription rights resulted from increasing issued capital by EGP 600 million from EGP 2,096,640,000 to EGP 2,696,640,000, at EGP 2 par value, or 0.28617-for-1. On October 9, the Egyptian Financial Supervisory Authority (EFSA) announced it initialed approved the request of PHD to invite shareholders to subscribe to 300 million secondary shares at EGP 2 par value (plus EGP 0.03 issue costs) each, to increase issued capital by EGP 600 million. The offering will be managed by EFG-Hermes and Pioneers Holding via receiving bank Arab African International Bank (AAIB). The subscription, which will close on December 2, will be carried out at EGP 2 par value plus EGP 0.03 issue costs. According to the company's statement, launching the secondary offering at current time reflects investor confidence in the real estate sector and its ability to lead economic growth.
