The first tranche, comprising 8.75 million shares or 7 per cent of the company's total, is being offered at a price of £E 54 ($9.50). Investors in the first tranche will have to subscribe to a minimum of 100 and not more than 5,000 shares. The subscription period is 11-30 days.
On completion, a second tranche will be offered in the form of a private placement covering 12.5 million shares, or 10 per cent of Egyptalum's total capital of £E 500 million ($88 million). Offered at a minimum price of £E 54, subscribers have to order at least 50,000 and not more than 500,000 shares. Investors are not allowed to subscribe to both tranches.
Egyptalum is currently 92.2 per cent owned by HCMI; the remainder is held by other local shareholders. HCMI's shareholding will be reduced to 75.2 per cent after the offering. National Bank of Egypt is Egyptalum's financial adviser on the transaction; Commercial International Brokerage Company is the bookrunner.
Egyptalum is the only local aluminium producer, with capacity of 190,000 tonnes a year (t/y) from six lines at its Naga Hammadi plant in Qena. The plant is being expanded to take capacity up to 320,000 t/y. According to the local HC Brokerage, Egyptalum in 2005 recorded sales of £E 3,022 million ($531 million) and profits of £E 931 million ($164 million), year-on-year increases of 24.7 per cent and 12.3 per cent respectively.