SINAI CEMENT
SCEM
Corporate ActionsPositive News
Sinai Cement Reports Strong Shareholder Backing for Capital Boost
Sinai Cement secures majority shareholder support for capital increase, posts Q1 profit surge amid strategic shifts.
July 18, 2024 at 12:44:00 PMScore: 88

Sinai Cement (SCEM) has secured significant support from senior shareholders for its capital increase initiative. In the first phase, 75.95% of the 168.20 million offered shares were subscribed at EGP 10 per share, totaling 127.74 million shares. The company announced it will not proceed with the second phase of the offering. Earlier in February 2024, an extraordinary general meeting approved a capital hike of EGP 1.68 billion, raising the issued capital to EGP 3.01 billion. Financially, Sinai Cement rebounded strongly in Q1 2024, reporting a consolidated net profit of EGP 301.11 million versus a net loss of EGP 58.47 million in the same period last year.
Recommended Actions
- Monitor stock price reaction to capital increase completion
- Consider buying on dips if profit momentum continues
- Watch for management's post-offering strategic moves
- Compare valuation with regional cement peers
- Consult a financial advisor for portfolio allocation adjustments
Positive Aspects
- 75.95% subscription by senior shareholders shows confidence
- Q1 2024 net profit turnaround of EGP 359.58 million year-over-year
- Successful capital increase strengthens balance sheet
Negative Aspects
- Cancellation of second offering phase may limit liquidity
- High reliance on insider participation raises concerns about external investor interest