Amer Group IPO oversubscribed 5.8 times

Reuters, Friday 26 Nov 2010

Individual investors show their interest in Egyptian real estate firm, Amer Group's, as the initial public offering (IPO) was oversubscribed 5.8 times

Amer group
one of Amer group projects

Egyptian real estate firm Amer Group's initial public offering (IPO) was oversubscribed 5.8 times, according to the group's underwriter, showing good demand from retail investors interested in attractive stock offerings.

Accordingly, each subscriber is to get one sixth the amount of shares he requested.

The firm, which sells holiday homes on Egypt's coasts and elsewhere, received bids for 478.9 million shares compared with 82.1 million on offer, Beltone Financial's head of investor relations, Osama Rashad told Reuters on Thursday.

Amer offered shares at 2.8 Egyptian pounds.

The Institutions’ demand for Amer Group shares was three times the amount offered, as they were covered by 3.5 per cent in the Group’s private placement

 The stock will be traded on the market as of Monday, 29 November. This IPO is the second on Egypt's main market since 2008, when Egyptian dairy and juice maker Juhayna Food Industries sold shares in an IPO in June.

Amer Group was established in December 2007. It owns hotels, restaurants, malls, and administrative and residential units.
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