Agri-food company Gourmet Egypt.com Food began trading on the Egyptian Exchange on February 10 after completing an initial public offering that combined a public offering with a private placement.

The IPO covered 190.5 million shares, representing about 47.6 percent of the company's share capital, priced at 6.90 Egyptian pounds per share. The deal raised nearly 1.31 billion pounds ($28 million) and valued the company at about 2.76 billion pounds at listing. Gourmet Egypt has 400 million shares outstanding.

The Financial Regulatory Authority approved the offering in advance. The tranche allocated to institutional and qualified investors was heavily oversubscribed, signaling demand above the shares on offer. Retail investors also showed strong participation in the public tranche.

In early trading on its first day, the stock rose about 24 percent, reflecting investor appetite for food-sector names on the exchange.

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Key Takeaways

The listing adds to a gradual revival of Egypt's primary market, which has seen renewed activity as authorities seek to deepen capital markets and attract foreign inflows. Food and consumer staples companies often draw interest in emerging markets due to stable demand and defensive revenue profiles. Egypt's economy has faced currency pressures and high inflation in recent years, prompting reforms and efforts to restore investor confidence. A successful IPO with strong institutional demand may signal improving sentiment toward Egyptian equities. The size of the free float, at nearly half of the company's capital, provides liquidity for trading. Sustained performance will depend on earnings growth, input costs and consumer purchasing power in a market where food inflation has been a key issue.