CAIRO: Under the symbol “EFID.CA,” the Egyptian Stock Exchange (EGX) commenced trading on leading snack manufacturer Edita Food Industries Thursday at an opening price of 18.5 EGP/share.
The public tranche of Edita’s secondary share issue on the EGX was 4.5 times oversubscribed, and its private placement was also 13.4 oversubscribed, the company announced in a statement posted on the EGX website Tuesday.
Edita, which has the largest market share in automatically packaged croissants and cakes, offered 16.3 million shares in the IPO, while demand reached 73.9 million shares. Last week, Edita launched a private institutional offering of shares on the EGX and global depository receipts (GDRs) on the London Stock Exchange.
The company operates with a market capital estimated at 6.7 billion EGP ($891 million) of which 30 percent are free floated on the EGX and London Stock Exchange.
“Listing big-size businesses gives a clear message to local and foreign business investors that Egypt’s economy is greatly recovering with several positive outlooks,” EGX Chairman Mohamed Omran stated Tuesday.
The consecutive listings and capital hike issues mean that the market played its “real” role in mobilizing people’s savings and providing needed finance for businesses to grow and provide job opportunities, he added.
“We (the EGX) have a clear commitment to supporting the Egyptian economy and activating development plans,” said Omran.
Some experts have said that listing big companies like Orascom Construction and Edita would ease traders’ complaints that the benchmark index does not reflect a real image for the market; the heavy CIB seizes more than 30 percent of the gauge.
“Edita is targeting sales in excess of 2.5 billion EGP ($328 million) in fiscal year 2014/2015,” CEO Hany Barzy told Reuters in a Wednesday interview.