CAIRO Egypt's Arabian Cement Company's initial public share offer, the first major listing on Cairo's bourse since the 2011 political uprising, was 18.5 times oversubscribed, an official at advising bank CI Capital told Reuters on Tuesday.
The offer raised $110 million with 85.2 million shares sold in the offer, placed at 9 Egyptian pounds ($1.28) per share, said Hesham Gohar, managing director for investment banking at CI Capital, which was co-bookrunner on the offer alongside EFG-Hermes.
Gohar said the oversubscription "reflects the confidence of investors, especially foreigners, in the Egyptian economy."
Arabian Cement said on Sunday it had set the price for its IPO at 9 Egyptian pounds a share after a private placing was 11.3 times oversubscribed.
Investors in the public offering were allocated 5.4 percent of their bids, while shares sold in the private offering were rationed at various rates.
The company said last week it was expecting the IPO to be around $120 million, with the proceeds set to go to existing investors selling their shares.
It has previously said that trading will start around May 21.
Egyptian stock market chief Mohamed Omran told Reuters the oversubscription reflected traders' appetite for any new stocks in the market, adding that the Cairo bourse was "ready to accept more offers".
Arabian Cement has a production capacity of 5 million tones a year and a market share of around 8 percent.
(Reporting By Ehab Farouk; Writing by Shadia Nasralla and Stephen Kalin; Editing by Greg Mahlich and Keiron Henderson)