In a big surprise to the financial market, Ezz Steel, the giant company in the iron industry, decided to remove itself from the Egyptian Stock Exchange.. But the biggest surprise is that it returned again to trading on the stock exchange.. How did this happen? Why was the company canceled in the first place? What does this mean for the market and investors? .. Watch this video until the end and we will tell you what happens in Ezz Steel
Today morning, all financial circles were surprised by a decision by the Board of Directors of Ezz Steel Company at the beginning of December 2024, in which they decided to implement voluntary delisting procedures from the listing tables on the Egyptian Stock Exchange. In short, they were going to voluntarily delete the company’s name from the stock exchange and buy the shares of people who did not want to continue with the company. On the stock exchange
But the issue is not as simple as this because this is not the first time it has happened. This voluntary delisting takes place in certain cases, such as when the company wants to reduce its obligations on the stock exchange or if it has a desire to change its administrative structure. In the case of Ezz Steel, this decision was part of a comprehensive plan. To modify the company’s position in the market
What were the details of deletion and purchase?
In an official statement, the company announced that the prices of the shares that it will buy from shareholders who do not wish to continue with the company will be the highest closing price of the share during the month preceding the delisting decision, which reached about 118.98 pounds per share. This means that the company was prepared to pay high prices to shareholders who did not want to continue.
What is the reason for deletion?
In most cases, voluntary delisting occurs because the company wants to move faster or control its financial and administrative situation better. In the case of Ezz Steel, the delisting process was part of its attempt to reduce costs and reorganize itself in a way that allows it flexibility in the market. However, it was In the process of purchasing shares on the London Stock Exchange, which are shares of certificates of deposit
What’s new? Why did they return to trading again?
The surprise happened when the Egyptian Stock Exchange decided to return Ezz Steel shares to trading again on December 8, after the delisting decision had been taken, and the Stock Exchange decided to allow Ezz Steel to return to the markets after the company had taken its measures and agreed to buy back shares for shareholders… and the Stock Exchange returned to trading shares. The company based on the decision of the Board of Directors that was taken in the session of December 7, 2024, after the company confirmed that it will commit to purchasing shares at prices suitable for shareholders.
What impact does this have on the market and investors?
Some experts say that re-trading Ezz Steel shares after delisting was an important step to revitalize the market.. As you know, the Egyptian Stock Exchange suffers from a lack of liquidity at times, and the return of shares of a large company like Ezz Steel may have a positive impact on the movement of stocks in general.
As for investors, this decision may be a great opportunity to buy shares at a suitable price if there is an offer to buy shares from the company or they already have shares. Also, if the company continues its financial restructuring, this may be an indication of improving its position in the market.
