Orascom Construction Industries (OCI), Egypt's largest listed company, has announced plans to end its Global Depository Receipts (GDRs) programme in the London Stock Exchange as the company will relocate from Cairo to Amsterdam under the auspices of OCI NV with its shares to be listed in the NYSE Euronext exchange.
Construction and fertiliser company OCI NV will acquire the GDRs of OCI in exchange for ordinary shares in OCI NV, with plans to launch an American Depository Receipts (ADR) programme in the New York Stock Exchange subsequently, a statement released by OCI Friday outlined.
A group of US investors, led by Bill Gates-owned Cascade Investment LLC, have committed to approximately $1 billion for a stake in OCI NV, with experts expecting the deal to boost investor confidence in Egypt's main benchmark EGX30.
OCI's CEO Nassef Sawiris said that “This transaction is proof of the existing international appetite to invest in Egypt and bodes well for the Egyptian economy with more than $1 billion committed by US investors," the company's press statement highlighted.
Holders of OCI GDRs will have the option of either exchanging their shares with an identical amount of OCI NV shares or selling their shares to OCI NV at the price of LE280 per OCI share, the company announced.
OCI, headed by Nassef Sawiris, has an approximate market value of LE55.8 billion.