Multimillionaire businessman Abdelwaheb Ben Ayed, a prominent figure in the Tunisian business world, is grappling with significant losses as shares of Poulina Group, the Tunis-based conglomerate he owns a substantial stake in, continue their downward trajectory.
The market value of Ben Ayed’s stake in the publicly traded conglomerate has experienced a considerable decline, shedding TND8.75 million ($2.83 million), owing to persistent selling pressure that has triggered a double-digit percentage drop in Poulina’s share price throughout the year.
The conglomerate’s shares have plummeted by more than 16 percent since the start of the year, sliding from TND8.78 ($2.84) per share on Jan. 1 to TND7.35 ($2.379) at the time of writing this report.
The decline has resulted in substantial losses amounting to millions of dollars for shareholders, including Ben Ayed, who holds a beneficial 3.4-percent stake in the company.
Remarkably, despite the stock slump, Poulina Group displayed a resilient financial performance in the first quarter of the 2023 fiscal year.
The conglomerate’s revenue experienced a seven-percent increase, reaching TND976.77 million ($321.15 million) compared to TND916.64 million ($301.4 million) in the same period last year.
Poulina’s ability to seize new market opportunities, foster strong customer relationships, and efficiently manage production processes contributed to this exceptional performance.
On the other hand, Ben Ayed has suffered a substantial decline in the market value of his stake due to the recent drop in Poulina Group’s stock price.
Since the year began, the market value of his stake has plunged by TND8.75 million ($2.83 million), dropping from TND53.73 million ($17.39 million) to TND44.98 million ($14.56 million) as of now.
Despite these losses, Ben Ayed remains one of the richest investors on the Tunis Stock Exchange. The decline in Poulina Group’s shares reflects the challenges faced by investors in the volatile market.
As investors navigate this period of market turbulence, the coming months will reveal whether Poulina can regain its footing on the local bourse and rebound, mitigating the losses faced by its shareholders and reinforcing the confidence of market participants.