Two Emaar Misr execs resign after disappointing Egypt IPO
Walid El-Hindi and Ahmed Fathallah have left the Dubai property firm’s Egyptian subsidiary
Two senior executives at Egypt’s Emaar Misr have resigned, following the property developer’s lacklustre flotation on the Cairo stock exchange, Reuters reported.
Chief development officer Walid El-Hindi and chief investment officer Ahmed Fathallah have left the firm to “pursue new opportunities,” Emaar Misr said in an emailed statement. El-Hindi left Emaar Misr on July 30, while Fathallah’s resignation is effective from August 4, it was reported.
The listing of Emaar Misr, the Egyptian unit of Dubai-based Emaar Properties, was billed to be the largest flotation on the Cairo stock exchange since 2007. But despite its heavily oversubscribed IPO, the developer’s stocks have taken a blow as foreign-exchange-related woes and violence in the Sinai weigh on investor sentiment, The Wall Street Journal reported last month.
In May, Emaar Misr was reported to be looking to raise $367 million (2.8 billion Egyptian pounds) through the sale of 600 million shares on the Cairo bourse, at a price of 4.7 Egyptian pounds per share, according to Reuters.
The developer, however, later went on to announce an offer price of 3.8 Egyptian pounds per share, well below the figure indicated earlier. The closing price of the stock was 3.42 Egyptian pounds on August 2.
The news comes as the Dubai-listed Emaar Properties reported a net profit of $321 million during the second quarter, a 16% rise on the same period last year.
