Deals
IPO Flop Sounds Alarm Before Egypt's $6 Billion Selling Push
- Investment firm Sarwa’s shares slide as much as 18.5% in debut
- Government must weigh between moving ahead or possible losses
Traders work in the trading hall of the Egyptian stock exchange in Cairo, Egypt.
Photographer: Shawn Baldwin/Bloomberg
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A bleak debut for Sarwa Capital’s stock would have been bad enough but it may also be an omen for Egypt’s plans to raise over 100 billion Egyptian pounds ($6 billion) in its state divestment drive.
The private investment firm plunged as much as 18.5 percent in debut trading, despite the hype surrounding its initial public offering which raised about 2.2 billion pounds. Sarwa recouped some losses on Monday, but resumed its slide the following day on concern over the IPO pricing. It closed up 0.3 percent on Tuesday.