On its first day of trading Sunday, Arabian Cement jumped from EGP 9 to EGP 10.39, with a trading volume of 17.3m shares. The total value of shares traded was US$179.8m.
The company’s CEO Jose Maria Magrina said offering shares on the Egyptian stock exchange is a positive step towards increasing the company’s capital in the future, and it is an opportunity that was not available before.
The company is offering 40% of the company’s shares on the stock market. It is the first such offering since the 25 January Revolution in 2011.
According to Magrina, the offering was oversubscribed 18.5 times, as recorded purchase orders for private market transactions reached 460.5m shares, while the volume of shares being offered for sale was only 24.9m, an allocation rate of nearly 5.4%.
The total demand for shares in the company through both public and private offering reached US$1.5bn, despite the offering only having a total value of US$110m from the sale of 85.2m shares at EGP 9 per share.