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Egypt’s Ghabbour family has gained $32.9 million (EGP516.1 million) in the past 52 days, as shares in GB Auto surged to their highest price since August 2019 amid sustained buying pressure by local investors.
The multimillion-dollar gain in the family’s equity stake came off a double-digit increase in the company’s shares, as investor buying interest pushed the share price to a record 25-month high.
GB Auto is an Egyptian manufacturer of automobiles, buses, trucks and motorcycles founded by Kamal and Sadek Ghabbour in 1960. Since then, the company has grown to become the largest automobile manufacturer in Egypt.
The affluent Ghabbour family holds a majority 62.9-percent stake in the leading auto manufacturer as of June 2021.
Over the years, the company has invested significantly in the expansion of its assembly capacity, which has increased to about 80,000 units per year.
Strong growth of passenger car, motorcycle and three-wheeler sales in the first half of 2021 pushed its revenues across key segments by 42 percent to EGP14.1 billion ($896.23 million), from EGP9.9 billion ($629.3 million) in the first-half of 2021.
This resilient performance triggered the double-digit rise in the company’s share price, as local investors sustained buying interest in reaction to a 165-percent increase in the automakers’ profit in the first half of 2021.
Shares in the company have recently increased from EGP3.40 ($0.2165) on June 30 to EGP4.10 ($0.2611) as of press time, 11:10 AM (UTC), Aug. 26, accruing a total gain of 22 percent for shareholders in the past 57 days.
The Ghabbour family has seen the market value of their stake increase from EGP2.34 billion ($149.0 billion) on June 30 to EGP2.86 billion ($181.90 billion) on Aug. 26.
This translates to a gain of EGP516.10 billion (32.90 million) for the multimillionaire family in 57 days.
