Egypt’s multimillionaire Khamis family has lost EGP428.24 million ($27.2 million) in nearly seven weeks, as shares in Oriental Weavers slump from their record 41-month high as investors rotate their portfolios.
Oriental Weavers is the world’s largest manufacturer of machine-made carpets, with production facilities in three countries. The Egypt-based carpet manufacturer distributes its products across roughly 150 countries worldwide.
Its net profit in the first half of 2021 surged by 151 percent to EGP670 million ($43 million) due to enhanced productivity and restructuring costs.
The family of Mohammed Farid Khamis, the Egyptian industrialist and entrepreneur who founded the leading carpet maker in 1979, holds a joint 56.6-percent majority stake in the company, with Farida Khamis, Yasmine Khamis, Milo Slava Khamis and Amir Khamis holding leadership roles in the family business.
The recent $27.2-million loss in the family’s stake can be attributed to profit-taking actions on the Egyptian bourse, as investors pocket gains after the company’s stock price skyrocketed to a 41-month high of EGP9.40 ($0.5984) on Sept. 12.
As of press time, Oct. 26, shares in the company were trading at EGP8.26 ($0.5244), 155-basis points lower than its EGP8.43 ($0.5353) per share opening price this morning.
Since Sept. 12, shares in the world’s largest carpet manufacturer have fallen from a price of EGP9.40 ($0.5984) to EGP8.26 ($0.5244) as of the time of writing. This translates to a 12.1-percent loss for shareholders in about seven weeks.
As a result, the market value of the family’s stake in Oriental Weavers has fallen from EGP3.53 billion ($224.35 million) on Sept. 12 to EGP3.1 billion ($197.15 million) on Oct. 26.
This translates to a loss of EGP428.24 million ($27.2 million) for the multimillionaire family in 44 days, nearly seven weeks.