ACC proceeds with EGX's listing plan

 

August 13, 2013

 

The Company commissions "EFG-Hermes" and "CI Capital" as financial consultants for the IPO

 

Arabian Cement Company confirms proceeding with listing its shares on EGX by the first quarter of 2014. Jose Maria Magrina, Chief Executive Officer of Arabian Cement Company (ACC), announced that the Company has commissioned EFG-Hermes and CI Capital as financial consultants for the IPO. The percentage of shares to be offered in IPO hasn't been specified yet. ACC plans to offer its shares as scheduled though the current political and economic instability.

 

Maria told AlBorsa Newspaper that the offering aim is to restructure the Company's equity and to increase its capital in order to provide the necessary funding for international expansions. Maria denied using the capital increase in expanding locally or adding new cement production lines. ACC CEO noted negotiating with the Company's shareholders to determine the percentage of shares to be offered in IPO, adding that it won't be less than 22.5% and not more than 40%.

 

Jose said that the Company's capital amounts EGP 757,479 million, Cementos La Union acquires 60% and 40% for Egyptian shareholders. Jose added that the Company's profits declined by more than 20% due to drop in production by 30% as a result of shortage in natural gas supplies delivered to the Company's two plants in Suez since September 2012. Shortage in gas supplies continue, expecting more decrease in the Company's production of clinker to reach 3.1 million tons, comparing to 4.2 million tons last year.