Emaar Misr Shares Begin Trading on Egyptian Exchange Today
Omran: Record demand for Emaar Misr shares underscores domestic and international investor confidence in the outlook for the Egyptian economy; transaction is the latest in a string of successful IPOs on EGX.
Omran: Corporations have raised equity of c. EGP 21 billion since June 2013, making the EGX an engine of national growth.
Alabbar: EGX listing is a strategic decision and a reflection of our confidence in the potential of Egypt’s economy.
Cairo, 5 July 2015
Shares of Emaar Misr begin trading today on the Egyptian Exchange under the stock symbol EMFD.CA, days after the company offered 600 million shares worth c. EGP 2.3 billion in both public and institutional tranches. The offering represents approximately 13% of the company’s post-IPO capital.
A total of 510,000,000 ordinary shares were offered in an institutional tranche through a book-building process, while a further 90,000,000 ordinary shares were allocated to the public tranche. EFG Hermes and JP Morgan acted as Joint Global Coordinators and Joint Bookrunners for the initial public offering.
“Record coverage of 36x for this offering is a clear demonstration of rising investor confidence not only in the company’s performance and overall market conditions, but also in the potential of the Egyptian economy. The Emaar Misr offering has witnessed the largest oversubscription level in Egypt since the global financial crisis,” said Egyptian Exchange Chairman Dr. Mohamed Omran.
Approximately EGP 21 billion in equity has been raised on the EGX since June 2013.
“The significant volume of equity transactions — both in terms of listings and capital raising activity — is proof positive that the EGX is carrying out its primary role of helping corporations access the capital they need to grow while simultaneously providing an attractive platform for investors. The successful listing of large companies such as Emaar Misr sends a clear message to the investment community locally and globally that the economy is rapidly recovering —with an improving outlook. Any potential spillover of regional challenges is offset by Egypt’s sound regulatory framework, advanced technological infrastructure and our position as the region’s most diverse economy,” said Omran.
“High investor appetite for Emaar Misr proves once more that investors are willing to allocate significant liquidity to companies that offer compelling equity stories. I call on both private- and public-sector companies to capitalize on this liquidity in future capital raising activity that will, in turn, support economic growth,” Omran concluded.
Emaar Misr Chairman, Mohamed Alabbar said: “We are very pleased with the successful conclusion of our IPO on the EGX. We are honored to join our peers and partners in such an encouraging regulatory environment. Proceeds from the IPO will be directed to allow the company to carry out its ambitious growth plans,which reflect our confidence in the strong potential of the Egyptian economy. This listing is the outcome of our strategic approach to providing both institutional and retail investors the opportunity to invest in and gain exposure to the solid domestic market.”
Concluded EFG Hermes CEO Karim Awad: “We are honored to have acted as global coordinator on this landmark IPO,which has resulted today in the admission to trading of one of the largest publicly listed companies by market capitalization. As was the case with the two other Egyptian listings we concluded earlier this year, Emaar Misr witnessed strong demand from foreign, GCC and Egyptian investors alike. The success of the IPO — which stands as the largest IPO in Egypt since 2008 —and its record rate of over-subscription is a clear testament to the quality of Emaar Misr and its management, as well as to the growing confidence in the Egyptian economy and its stock market. We look forward to continuing to bring new, large, high-quality corporations to the Egyptian Exchange.”
Emaar Misr is one of the largest real estate investors in Egypt and a leading developer of premium residential communities. The company’s developments cater to a diverse client base through residential properties, retail and offices space, and hotels. Emaar Misr projects are strategically located in prime locations nationwide.
With a land bank of approximately 15.4 million square meters, Emaar Misr presently has four projects, including Uptown Cairo, Marassi, Mivida, and Cairo Gate.
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