Cairo – Mubasher: Orascom Development Holding AG, Orascom Development Egypt’s main shareholder, has sold 18.16 million shares in Orascom Development Egypt to boost free-float stake.
About 8.2% of the company’s shares were sold to investors through private transactions on the Egyptian Exchange (EGX), the company said in a filing to the EGX on Monday.
The sale comes as part of Orascom Development Holding AG’s strategy to enhance liquidity ratios and trading volume on stocks, as well as introduce a reward system for employees by 2% of the company’s capital, CEO and Managing director Khaled Bichara commented.
Accordingly, this move has been applied in accordance with the decision of the extraordinary general meeting (EGM), held last March, which would raise free- float shares to 25%, he continued.
The company has no intentions to sell a further stake in Orascom Development in the near future, Bichara remarked.
In March 2018, the CEO had said that Orascom Development was planning to raise free-float stake on the EGX to 25% this year from 15% now.
On Sunday, 15 April, the EGX announced that a heavy trade transaction worth EGP 608.4 million was implemented on Orascom Development Egypt.
It is worth noting that Orascom Development had sold some of its non-core assets at a total value of EGP 1.24 billion two months ago.
Orascom Development’s capital amounts to EGP 1.1 billion distributed over 221.6 million shares at a par value per share of EGP 5.
