Domty Jumps as Egypt's First IPO in 9 Months Makes Trading Debutby
Egyptian cheese-maker Arabian Food Industries Co. climbed on its debut after becoming the country’s first initial public offering in almost nine months.
The company known as Domty rose as much as 13 percent before closing 9.2 percent higher at 10.05 Egyptian pounds. About 13 million shares traded. Domty’s 49 percent stake sale had been covered 5.5 times in the private placement and 10.7 times in the public offering.
The gains underscore a revived appetite for Egyptian stocks after the central bank moved to stem a dollar shortage that has hindered foreign investments and slowed economic recovery. The Arab world’s most populous nation devalued its currency by 13 percent and injected more than $2.4 billion into the market this month in an attempt to lure overseas cash to the country’s stocks and bonds.
“The rise should be looked at in context of the momentum in the markets post the pound devaluation and monetary policy measures,” said Allen Sandeep, the Cairo-based director of research at Naeem Brokerage. It’s still “too early to make any judgments on the issuance,” he said.