FILE- Employees in the EGX following performance of the trading session Ghazl El-Mahalla
CAIRO - 14 August 2022: The Egyptian Stock Exchange announced Sunday amendments to the prospectus for the capital increase of Ghazl El-Mahalla Football Company (not listed on the stock exchange).
The stock exchange indicated, in a statement, that the underwriting will close on August 28.
This is considered to be the second extension of the period of the initial public offering (IPO) Ghazl El-Mahalla Football Company after it was extended from July 3 to August 14.
Earlier, The Financial Regulatory Authority (FRA) agreed to increase the maximum number of shares that a single subscriber is allowed to subscribe to, to 15 million shares instead of 2 million shares.
“In the event that the subscription was not covered within the specified period, each subscriber may, in this case, request a refund of the subscription amounts he had paid, and the company has the obligation to return these amounts in full, including the issuance expenses upon request, within seven working days in accordance with the text of Article 28 of the Executive Regulations of the Capital Market Law 95 for the year 1992,” it elaborated.
In addition, in case that the refund period expires and no refund requests are received, the value of the subscriptions shall be transferred to the capital account mentioned in the prospectus.
According to the statement, as a result of the failure to cover the entire subscription according to its conditions and the failure to meet the registration conditions required for the company's listing on the Egyptian Stock Exchange, which leads to the postponement of taking the registration procedures until the company fulfills these conditions.
The initial public offering (IPO) prospectus of Ghazl El-Mahalla Football Company included an increase in the capital from LE 102 million to LE 200 million, in the first market for the number of 98 million shares of the company's capital at a price of LE 1.02 per share.
On Sunday, June 12, Ghazl El-Mahalla Football Company started the IPO of shares to increase the company’s issued capital from LE 102 million to LE 200 million, for the number of 98 million shares of the company’s capital at a price of LE 1.02 per share.
The Ministry of Public Business Sector completed the establishment of Ghazl El-Mahalla Football Company in January 2021, to become the first Egyptian joint stock company specialized in football activity, after separating the football activity at Ghazl El-Mahalla Club affiliated to Misr Spinning and Weaving Company in El-Mahalla El-Kubra - one of the companies of the Ministry of Public Business Sector - in an independent entity bearing the name "Ghazl Al-Mahalla Football Company".
The capital of the Mahalla Football Company consists of an in-kind share of the Misr Spinning and Weaving Company in Mahalla, about LE 65 million, in exchange for the right to use the name and stadium for a period of 20 years. The capital was increased by LE 37 million from Egyptian and Gulf investors and institutions in a private subscription, bringing the paid-in capital to LE 102 million, before offering the increase by LE 98 million pounds for public offering.