CAIRO: Egyptian real estate firm SODIC’s board approved a five-for-one stock split to make it easier for investors to buy and sell its shares, a statement from the company said on Thursday.
Shares in Egypt’s third-biggest listed developer, which manages mostly upscale real estate projects, trade at around LE 105 ($18.1) each.
The company’s management wants to lower that price to bring it in line with what it calls an international trend towards small stock face values.
"The board wants to allow small investors on the Egyptian exchange the chance to trade the firm’s stock, to boost trading on its shares and thereby benefit the current shareholders," the statement said.
The firm’s board has approved the stock split and called an extraordinary general assembly to seek their backing.
SODIC posted third-quarter net profit of LE 56.7 million earlier this month, rebounding from a year-earlier loss as revenue soared.
SODIC’s price per share is higher than that of other real estate firms on the index. Talaat Moustafa Group, Egypt’s biggest listed developer, trades at LE 8.3 and Palm Hills at LE 6.1.
"We want to drive volumes and be able to trade in the same range as other developers so that the firm can compete," Investor Relations Manager Abdel Fattah Allam told Reuters.
The firm’s shares closed up 1.9 percent, outpacing the benchmark index which climbed 1.5 percent.
The Egyptian stock exchange said it will suspend trading on SODIC’s shares until the decision is approved by the Egyptian Financial Supervisory Authority (EFSA).
