SINAI CEMENT
SCEM
Management DecisionsNeutral News
Sinai Cement Secures Regulatory Nod for Major Capital Expansion
Sinai Cement gains FRA approval for EGP 10B capital expansion amid narrowing 2023 losses.
January 15, 2024 at 2:27:00 PMScore: 85

Cairo-based Sinai Cement has received approval from Egypt’s Financial Regulatory Authority (FRA) to advance its proposed capital increase. The EGX-listed firm aims to boost its authorized capital to EGP 10 billion (from EGP 2 billion) and raise issued capital by EGP 1.68 billion through the issuance of 168.20 million new shares. Despite posting consolidated net losses of EGP 121.45 million in the first nine months of 2023, this marks a 31% year-on-year improvement. Standalone losses also narrowed significantly, dropping from EGP 172.55 million to EGP 108.87 million during the same period.
Recommended Actions
- Monitor stock price reaction to capital hike announcement
- Review prospectus for share issuance terms
- Compare loss trends with industry peers
- Watch for management's capital allocation plans
- Consult financial advisor on dilution impact
Positive Aspects
- FRA approval for strategic expansion
- Significant YoY loss reduction
- Strengthened capital base for growth
Negative Aspects
- Persistent net losses in 2023
- Share dilution risks from new issuance