Cairo - Mubasher: Arab Developers Holding opened the subscription for its capital increase for a period of 10 days, closing on 19 April, according to a press release.
The group aimed to increase its issued capital from EGP 1.39 billion to EGP 2.39 billion, distributed over 10 billion shares at a nominal value of EGP 0.10 per share, in addition to issuance expenses of one piaster for every 10 shares.
The transaction was completed by existing shareholders and purchasers of subscription rights for a total of 9.86 billion shares, with a total value of EGP 986.60 million, achieving a coverage rate of approximately 98.66%.
The number of unsubscribed shares amounted to 134.20 million shares, representing only about 1.34% of the total increase, reflecting the success of the offering, strong market response, and investor confidence in the company’s future and expansion plans.
Meanwhile, the real estate developer aims to utilize the proceeds of the capital hike to boost growth rates, profitability, and sustainability.
It will also scale its land portfolio to develop diversified real estate projects for Dalma Real Estate Development, with an initial budget of approximately EGP 400 million.
The company will also allocate around EGP 200 million to accelerate construction in hospitality projects within the Nyoum Pyramids” development, adjacent to the Grand Egyptian Museum.
In line with its strategy to improve financial efficiency, Arab Developers Holding will allocate EGP 250 million to reduce credit facilities for Dalma, in addition to EGP 150 million to partially repay credit facilities for Nyoum New Cairo. This will contribute to lowering financing costs, enhancing profitability, and strengthening the group’s financial position.
Last March, the Financial Regulatory Authority (FRA) approved the EGX-listed firm’s capital increase transaction.
