In one of the most prominent subscription offerings in the Egyptian capital market in 2026, Arab Developers Holding announced the successful completion of its capital increase subscription process, marking the largest real estate sector capital increase on the Egyptian Exchange this year, achieving a coverage rate of approximately 98.66%, supported by strong participation from major investors and business leaders in the local market.

Subscription Details and Capital Increase

Arab Developers Holding opened the subscription for its capital increase on Sunday, April 5, for a period of 10 days, closing on April 19. The company aimed to increase its issued capital from EGP 1.39 billion to EGP 2.39 billion, representing an increase of EGP 1 billion, distributed over 10 billion shares at a nominal value of EGP 0.10 per share, in addition to issuance expenses of one piaster for every 10 shares.

The subscription was completed by existing shareholders and purchasers of subscription rights for a total of 9.865 billion shares, with a total value of EGP 986.6 million, achieving a coverage rate of approximately 98.66%. The number of unsubscribed shares amounted to 134.2 million shares, representing only about 1.34% of the total increase, reflecting the success of the offering, strong market response, and investor confidence in the company’s future and expansion plans.

The high coverage rate, driven by major businessmen and investors in Egypt, reflects the strong financial position of Arab Developers Holding, as well as investor confidence in its long-term strategy and its ability to execute well-planned expansion strategies within the Egyptian real estate market, supporting sustainable growth and maximizing shareholder value.

Use of Proceeds

Arab Developers Holding aims to utilize the proceeds of the capital increase to enhance growth rates, profitability, and sustainability by expanding its land portfolio to develop diversified real estate projects for Dalma Real Estate Development, with an initial budget of approximately EGP 400 million.

The plan also includes allocating around EGP 200 million to accelerate construction in hospitality projects within the “Nyoum Pyramids” development, adjacent to the Grand Egyptian Museum, capitalizing on expected tourism momentum and increased demand for hotel rooms, thereby supporting foreign currency inflows and boosting operating revenues.

As part of improving financial efficiency, the company intends to allocate approximately EGP 250 million to reduce credit facilities for Dalma, in addition to EGP 150 million to partially repay credit facilities for Nyoum New Cairo, contributing to lowering financing costs, improving net profitability, and strengthening the group’s financial position.

Management Statements and Investor Confidence

In this regard, Dr. Ayman Ben Khalifa, CEO and Managing Director of Arab Developers Holding, stated that the strong success in covering the capital increase subscription at approximately 98.66% reflects the high level of confidence in the company’s business model among investors in the Egyptian market, particularly major businessmen and institutional investors.

He added that this represents a strong incentive for the company to continue executing its expansion plans based on a clear vision aimed at maximizing shareholder value and enhancing sustainable growth.

He further noted that the proceeds from the capital increase will be deployed according to a well-structured plan targeting new land acquisition opportunities, accelerating execution rates in ongoing projects, and improving the financial structure while reducing financing costs, thereby strengthening the group’s financial position and enhancing its operational efficiency in the coming period.

This strong investor turnout and high coverage rate serve as a powerful vote of confidence not only in Arab Developers Holding but also in the strength and resilience of the Egyptian economy and the attractiveness of the local capital market. It also highlights the effective role played by the Egyptian Exchange in supporting and regulating offerings and subscription processes efficiently, contributing to enhanced investor confidence and driving growth and investment.