By: Heba El-Kordy
Cairo – Mubasher: Raya Holding for Financial Investment's stock leapt by around 10% on the back of news that the company's chairman Medhat Khalil may raise or reduce his shareholding in the company.
By 1:25 pm Cairo time, Raya Holding's stock jumped 9.86% to EGP 7.13.
On Sunday, shareholder, managing director and board chairman Medhat Khalil said in a statement that along with other parties he was considering submitting a mandatory tender offer (MTO) to either increase his shareholding the company or reduce it.
Khalil's decision would be dependent on the decision to be issued by the Grievances Committee affiliated to the Egyptian Financial Supervisory Authority (FRA).
Commenting on these updates, technical analyst at the African Economic Council Mona Mostafa described Raya's stock surge as "fake" as the stock's performance did not entail any major change in traded value.
Mostafa added that since the FRA's decision that Raya's chairman present an MTO, Raya's stock had seen sharp volatility.
Earlier Raya's chairman said he did not receive a notice from the FRA that he must submit an MTO for the company's shares. The FRA said that Raya's Medhat Khalil along with other shareholders should present an MTO to fully acquire 100% of the company.
