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InterCairo Aluminum to cancel IPO procedures due to US dollar exchange hikes - Daily News Egypt

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InterCairo Aluminum to cancel IPO procedures due to US dollar exchange hikes

The company froze its expansion plans due to its financial crisis resulting from the US dollar exchange hikes, with no intention to repeat the stock offering experience


An official source at InterCairo Aluminum Extrusion said that the company has ruled out the listing and offering of its shares on the Egyptian Exchange (EGX) after the EGX has agreed to delist its shares from the stock market.

The source added that InterCairo has retreated from offering its shares due to the high costs of listing shares and the measures of determining the fair value of stocks since 2015. In addition, the company has been facing a financial crisis due to the US dollar exchange hikes on the informal market, which led to increasing prices of imported raw materials, as well as energy supply.

He continued that the world prices of aluminium dropped significantly, which has forced the company to retreat from offering its shares on the EGX.

The source said that the owners of InterCairo decided to freeze the company’s expansion plans and be content with the current production rate of its factories. The company seeks to adapt itself to the current financial, monetary, and economic conditions in the local market, while maintaining minimum profitability.

He pointed out that the company does not aim to obtain banking financing or attracting new shareholders, due to the current financial turmoil that would affect the company’s value.

The EGX’s Listing Committee approved in March 2015 the listing of the company with a capital of EGP 200m, at a nominal price of EGP 1 per share. He pointed out that this move aims to provide funding for the company’s future expansions and add new production lines at the company’s factories.

These expansions aimed to increase the production capacity of aluminium to reach 65,000 tonnes by the end of 2017, compared to 44,000 tonnes by the end of 2015, through adding three new piston lines, and a painting line at an investment cost of up to EGP 45m. The company also intended to establish two new factories of aluminium and Khhmonyum.

 

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https://ww.dailynewssegypt.com/2016/10/23/566221/
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