Real estate developer Palm Hills Developments (PHD) said on Wednesday it would begin trading on the main London and Egyptian stock exchanges on May 8 after pricing its $201.3 million initial public offering.
The offer price has been set at LE 21.75 per share and $20.31 per Global Depository Receipt (GDR), the company said in a statement.
“We are delighted that investors have recognised PHD’s solid sales track record, experienced management team and the Company’s reputation, brand and strong position in the Egyptian real estate market, said Yasseen Mansour, Chairman and Chief Executive Officer of the Company.
“We believe that these factors, combined with the economic and demographic fundamentals in Egypt, will support our future growth.
The Global Offering comprises up to 63.4 million shares to be offered in the form of shares and GDRs (each GDR will represent five shares).
EFG Hermes and Goldman Sachs International have been granted an Over-allotment Option to purchase up to 9.5 million shares, whether in the form of shares or GDRs at the offer price, equivalent to 15 percent of offered shares.
On Wednesday Goldman Sachs International, as stabilizing manager gave notice to exercise the over-allotment option in full. The net proceeds arising from the exercise of the over-allotment option will be received by the selling shareholders and no such proceeds will be received by the company.
The pricing achieved gives Palm Hills an implied market capitalisation of around $1.88 billion, and the net IPO proceeds will be used to fund existing and planned development projects in Egypt and abroad.
Palm Hills property portfolio has a market value of $3.5 billion, prior to adjustments for tax, minority interests and land repayment obligations, according to property consultant CB Richard Ellis.
The 2007 fiscal year, Palm Hills’ revenues reached LE 535 million net profit of LE 179.8 million. – With agencies
