Emaar Misr for Development, which started trading on Sunday, offered to buy back 90 million shares through a fund after the stock plummeted on its second trading day, according to the state-run Mena news agency.
Mena reported the planned purchase without identifying the fund or the stock exchange official it cited. The shares were suspended from trading for about 30 minutes after plunging 14 per cent. Emaar Misr closed down 9.9 per cent on Monday at 3.55 Egyptian pounds (Dh1.67) a share in Cairo.
“This process takes place through the stabilisation fund. It happens in all IPOs,” said Ahmed El Guindy, the head of investment banking at EFG-Hermes, which was a bookrunner for the IPO. Wafik Dawood, a portfolio manager at Compass Capital, described the buy-back as an “automatic process” that aims at ensuring share price stability.
Emaar Misr, Egypt’s second-largest publicly traded real estate developer, has declined 6.6 per cent since its debut after raising 2.28 billion pounds in the country’s biggest initial public offering this year.
The company is a unit of Emaar Properties, Dubai’s biggest real estate developer. Emaar’s public relations department did not immediately respond to emailed questions.
Comments ( 0 )
Post a Comment