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InterCairo Aluminum to float 30% of shares in EGX during December - Daily News Egypt

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InterCairo Aluminum to float 30% of shares in EGX during December

InterCairo Aluminum Industry awaits approval from the Egyptian Exchange to begin the IPO procedures, after the company has provided all the required documents


Abdel Maksoud Ibrahim, head of investor affairs at InterCairo Aluminum Industry, said that his company plans to float 60m shares, representing 30% of its shares, in the Egyptian Exchange (EGX) in December after it obtains the EGX’s approval to begin the IPO procedures.

Ibrahim added that his company obtained earlier the Egyptian Financial Supervisory Authority’s (EFSA) non-objection of the fair value of quoted shares worth EGP 7.13. The company awaits the approval of the EGX’s administration after the company submitted all the required documents nearly three months ago.

The EGX’s Listing Committee approved in March 2015 the listing of the company with a capital of EGP 200m, at a nominal price of EGP 1 per share.

He pointed out that this move aims to provide funding for the company’s future expansions and adding new production lines at the company’s factories.

Ibrahim said that the company has four factories for aluminium and the manufacture of vehicle structures in 6th of October City, with investments of EGP 1.6bn, in addition to nine production lines and aluminium extrusion presses.

InterCairo Aluminum agreed for Bloom Securities to take over the financial consultancy of the flotation of its shares in EGX.

InterCairo Aluminum achieved a net profit of EGP 1.77m during the first quarter (Q1) of 2016 compared to EGP 8.08m in the same quarter of 2015, recording a decline of 78%.

Ibrahim said that the decline in profits came as a result of the higher financing expenditure during the first three months, the higher cost of imported raw materials, and lower quarterly sales.

The company’s quarterly sales reached EGP 172m compared to EGP 181m the previous year, while the financing expenditures amounted to EGP 7m compared to EGP 5m the previous year. The company incurred losses of EGP 1.8m resulting from changes in foreign exchange rates, while it achieved profits of EGP 3.9m.

InterCairo Aluminum achieved a net profit after tax of EGP 9.6m last year compared to EGP 78m in 2014.

More than 20 companies are waiting for approval by the EGX’s administration and EFSA to proceed to float part of their shares in the stock market. This number is considered good for the stock market as they would increase the number of traded shares.

https://cdn2.dailynewsegypt.com/2016/07/17/intercairo-aluminum-to-float-30-of-shares-in-egx-during-december/
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