Orascom to raise percentage of free trading shares to 25%

BY

Sat, 31 Mar 2018 - 09:03 GMT

Resort in El Gouna - Orascom Development Website

Resort in El Gouna - Orascom Development Website

CAIRO – 31 March 2018: Orascom Development Egypt (ORHD) intends to increase the percentage of free trading shares on the Egyptian Exchange (EGX) to 25 percent in 2018, up from the current 15 percent, Chief Executive Officer of Orascom Development Egypt Khaled Bishara.

Bishara clarified in a press conference that the increase will come from the sale of shares owned by parent company Orascom Development Holding.

Orascom decided to increase the number of hotel rooms in El Gouna touristic resort between 200 and 250 rooms within 24 months, starting from the second quarter of this year, the executive officer added.

The company seeks to buy two pieces of land in Cairo and the northern coast, not less than two million square meters per piece, to establish an integrated city, according to Bishara, adding that they are currently negotiating on three pieces to choose from.

He added that the company will reduce the indebtedness by LE 1 billion this year to reach LE 3.5 billion ($198.5 million).

Orascom sold The Abu Tig Hill project in El Gouna for $22 million and will be included in the first quarter results, Bashir said.

He pointed out that the average occupancy rate in El Gouna hotels ranges between 77 and 80 percent in 2017.

The company will focus in the future on the price element of the room, in addition to occupancy rates, expecting room prices to increase 20 percent this year, according to the statement.

Orascom Development Egypt is a public company, listed on the Egyptian Exchange (EGX) since June 1998.

It operates within the Consumer Services sector focusing on hotels, resorts and cruise lines with 52 subsidiaries operating across Northern Africa, Middle East and Southern Europe.

Orascom Development Egypt is based in Cairo, Egypt and was established in December 1995.

Comments

0

Leave a Comment

Recommend Article