In a statement to the EGX on Tuesday, September 28th, the FRA said that it agreed to split the nominal value of Nile City Investments’ (NCIN) share from EGP 100 per share to EGP 10 per share, bringing the number of the company’s shares to 72.50 million shares instead of 7.250 shares.
Who is affected🤷: On September 20, the company’s board of directors approved a comprehensive plan to adjust the company’s position in the EGX, which includes stock splitting and the selling of shares by main shareholders. The company is set to contract with an investment bank to find qualified buyers to purchase up to 10% of the shares to meet the minimum free trade.
Why is this important🤔: The company said in a previous disclosure to the EGX that this plan requires that main shareholders sell part of their stake to buyers in proportion to the split. The broader plan also considers dividing the company on the basis of tourism and real estate activity. The company has warned its main shareholders of the consequences of reversing the implementation of this plan, which might expose it to delisting from the EGX.