Cairo - Mubasher: Pharos Research said it reiterated its fair value of Alexandria containers (ALCN) at EGP 140 per share with Hold recommendation on current market price.
Pharos noted that ALCN’s board did not give any indications concerning expansion plans for the use of the potential proceeds from its upcoming capital hike.
Alexandria Containers board announced plans to raise its capital by offering an additional stake in the market. The details of the capital increase are yet be announced.
Pharos noted that initial indications point to raising free float to 50%. The board indicated that these plans minimum threshold of 10% in free float traded on the EGX.
Pharos believes the potential stake offered by the company’s management will gain interest from buyers, as the company’s profitability will surge on the recent pound devaluation and the availability of foreign currency will boost the volumes of containers handled going forward.
Existing shareholders will reap the benefits of an independent fair price valuation, as it most likely to include the adjusted EGP/USD rate and the potential pick up in containers handled, as import levels will leap on FX availability, noted Pharos .
