Following a series of wealth gains, the El-Sewedy family — Egypt’s newest billionaire family — now confronts a notable contraction in the market value of their joint stake in Elsewedy Electric. This is linked to a recent downturn in the company’s shares on the Egyptian Exchange.
The market value of the El-Sewedy family’s stake in Elsewedy Electric has slumped by EGP4.09 billion ($132.5 million) in the past 36 days, as investors booked profits from their stakes in the company following a surge in its share price to record highs — this surge led to the subsequent decline in the family’s stake.
This recent decline contrasts with the $374 million gain the family recorded between Oct. 3 and Oct. 28, when the market value of their joint stake in Elsewedy Electric soared from EGP32.76 billion ($1.06 billion) to EGP44.31 billion ($1.44 billion).
El-Sewedy Electric shares plunge 9.24, market cap dips below $2 billion
Established in 1938 by the El-Sewedy family, Elsewedy Electric is a well-known player in the electrical equipment manufacturing industry. The company has played a pivotal role in numerous electrical projects across the Middle East and North Africa.
Ahmed El-Sewedy and his siblings, Sadek and Mohammed, hold a controlling and beneficial stake of 68.1 percent in the company, equivalent to a total of 1,478,358,330 ordinary shares.
In recent times, the company’s shares on the Egyptian Exchange have declined 9.24 percent — falling from EGP 29.97 ($0.969) on Oct. 26 to EGP 27.20 ($0.8880) at the time of writing this report — pushing the company’s market capitalization below the $2-billion mark.
El-Sewedy family’s stake drops to $1.3 billion amid market slump
According to data tracked by Billionaires.Africa, the market value of the El-Sewedy family’s joint shareholding in Elsewedy Electric has decreased from EGP44.31 billion ($1.43 billion) on Oct. 26 to EGP40.21 billion ($1.30 billion) at the time of writing this report.
This represents a loss of EGP4.09 billion ($132.52 million) for the billionaire family over the past 36 days. Despite this financial setback, the El-Sewedy family maintains their position as one of Egypt’s billionaire families and also as one of the richest investors on the local bourse.