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Domty’s share increases by 9.35% from offering rate on the initial days of its trading - Daily News Egypt

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Domty’s share increases by 9.35% from offering rate on the initial days of its trading

Although the session closed at the share’s increase of 9.35% compared to the offering price, it declined by 1.76% from the opening price


Shares of the Arabian Food Industries company Domty increased by 9.35% during its initial days in the Egyptian Stock Exchange (EGX), compared to the offering rate, where the session was closed at the price of EGP 10.6, and compared to the initial offering rate of EGP 9.20 per share.

Although Domty’s share opened the session with an increase of 10% and recorded a price of EGP 10.26 in the beginning of the trading session, then increased an hour later to EGP 10.32, it was not able to maintain its gains and closed down with a decline of 1.76%, compared to the opening price.

Domty’s offering is considered the first in 2016 for EGX. There have been fears over a reduction in share prices, similar to the most recent offerings received by EGX in 2015, like Emaar’s offering. During its first week, it declined to EGP 3.29 compared to the offering price of EGP 3.80.

Domty’s offering included two categories. The first category has 110.250m shares for individuals and institutions with financial solvency, and had been covered 5.5 times in the private placement. The other category including 12.250m shares for investors and had been covered 10.7 times in the public offering.

The EGX declined on Tuesday by 0.85% and the trading session closed at 7430.33 points, compared to 7494.12 points on Monday.

The EGX’s strategy relies on attracting new public offerings to provide funding and mobilise savings in the wake of the economic challenges that the country has experienced, Chairman of the EGX Mohamed Omran said.

He stressed that the success of Domty’s IPO confirms the market’s ability to attract foreign investment, especially given that the private placement witnessed foreign participation.

 

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https://wwww.dailynewssegypt.com/2016/03/22/domtys-share-increases-9-35-offering-rate-initial-days-trading/
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