Amer Group - an Egyptian conglomerate that comprises the heart and matter of all that counts in Egypt, hits the stock market next week after a successful IPO. Combining food industries and real estate, it speaks to the two things Egyptians spend on the most.
The result: The Egyptian stock market has been shedding shares, with individual investors selling off in preparation to sweep up stock following Amer Group's initial public offering (IPO). Trading in the group's shares will begin on Tuesday, after its IPO that was oversubscribed 5.8 times, according to figures released by the Egyptian stock exchange son Sunday.
The firm's priced shares sold in the IPO at LE 2.8 each valuing the company at LE5.7 billion pounds, its advisor Beltone Financial said last week. Shares will trade without price limits only for the first day, the bourse said in a statement Sunday. Beltone expects a rise in the share price, "because its value is more than LE2.8".
Amer, which owns hotels, restaurants, malls, a catering firm, a utilities company and other businesses, sold 328.6 million shares in a private placement that ended last Monday.
The IPO is the second on Egypt's main market since 2008 after Egyptian dairy and juice maker Juhayna Food Industries sold shares in June.