TAQA Arabia, the full-service energy and utility provider in Egypt, witnessed on Monday a strong performance on the Egyptian Exchange (EGX). The stock price increased 3900% to EGP 20.
The energy company debuted on the EGX on Sunday; however, all transactions executed on the company’s shares during the first trading day were cancelled.
In a statement on Sunday, the EGX said that cancelling the executed transactions came after EFG-Hermes, the offering advisor, submitted a request to cancel operations due to “incorrect execution”. About 75 transactions were executed by mistake by some individual investors, with a value of about EGP 395,000.
The last market price per share was about EGP 376.5 before the operations during the first trading session without price limits were cancelled.
The only deal that stood was by Qalaa Holdings, with a value exceeding EGP 3.6bn, during Sunday’s trading session.
The Egyptian Exchange Listing Committee had agreed to list TAQA Arabia in the stock exchange’s database, with a total of 1.352 billion shares, a nominal value of EGP 0.50 per share, and an issued capital of EGP 676.176m.
Rami El Dokani, Chairperson of the Egyptian Exchange, said that listing the shares of a major company such as TAQA Arabia in the main market of EGX encourages more private sector companies to join the stock exchange. This can eventually lead to enhancing the supply side by simplifying listing procedures and taking the action necessary to create an encouraging trade environment.
He explained the advantages of listing a company on EGX. It can help companies achieve their growth and expansion goals, as well as enhance the sectoral diversification of the market and increase its liquidity and depth, which leaves a positive impact on the economic growth in the country.
Khaled Abu Bakr, Chairman of Taqa Arabia Group, said that in the second quarter of this year, the company witnessed a restructuring process for its shareholders. As a result, the owners of 44% of the shares became free to sell their shares at any time. According to the disclosure report for the purpose of trading, the 44% share is an indirect shareholding of Qalaa Holdings in Taqa Arabia. Additionally, the report set the fair value of the company’s shares to be EGP 8.9, with a total value of the company’s shares amounting to EGP 12bn.
Abu Bakr added that the start of trading in the company’s shares is a new phase that aims to play a fundamental and effective role in the energy sector, not only across Egypt, but also in the Middle East and Africa. He stressed his confidence in the Egyptian stock exchange and its ability to attract regional and international investments.
TAQA Arabia aims to increase its business volume and expand its portfolio of projects, considering the stock exchange as a primary source of financing, according to Abu Bakr. In addition, the Financial Group Hermes managed the offering, while Baker Tilly played the role of the independent financial advisor. Zulfiqar and Partners law firm provided legal advice, and the office of PricewaterhouseCoopers Ezz El-Din, Diab and Partners acted as the auditor and financial auditor.
Mostafa Gad, co-chair of the promotion and underwriting sector at EFG Hermes, said that the EGX is hungry for new investment opportunities, especially as TAQA Arabia operates in one of the most vital sectors of the economy.
He stressed that this type of listing on EGX helps companies have direct access to liquidity to support their growth plans. It also facilitates and accelerates promoting potential future deals or offerings.
Gad stressed that the group is keen on offering new investment opportunities for local and foreign investors, which contributes to the growth of the capital market and supports the Egyptian economy.
