Juhayna IPO 6.8 times oversubscribed
Cairo, June 11, 2010
A public share offer by Egyptian dairy and juice maker Juhayna Food Industries, worth 192 million Egyptian pounds ($34 million), was oversubscribed 6.8 times, the firm's financial adviser said.
Mina Iskander of investment bank EFG-Hermes told Reuters subscriptions for 279.97 million shares had been received for the offering of 41.19 million shares. The shares were priced at 4.66 pounds each.
The public offering, Egypt's first since 2008, was part of a plan to raise about 1 billion pounds. The plan included a private placement that earlier closed 1.75 times oversubscribed.
Juhayna was offering 206 million shares, with some 165 million offered privately at 4.90 pounds. That private placement raised about 808 million pounds.
The total offering represents 39.6 percent of the capital of the company, which has said it will use the extra funds to expand food output, including investments in dairy production.
The global financial crisis put a stop to IPOs in Egypt after oil services company Maridive and real estate company Palm Hills Developments sold shares in mid-2008. - Reuters