Ahmed Ezz, Egyptian multimillionaire and founder of Ezz Steel, finds himself amidst a financial storm as his stake in the steel giant plummets by over $420 million. This significant decline is attributed to the recent devaluation of the Egyptian pound by the Central Bank of Egypt (CBE) and a recent dip in Ezz Steel’s share price.
According to data tracked by Billionaire.Africa, Ezz’s stake in the Cairo-based steel producer has declined by a staggering $422.38 million. The decline comes on the heels of a pivotal decision by the CBE to devalue the national currency, a move aimed at embracing a more market-friendly exchange rate regime.
Ezz Steel, one of MENA’s top steel producers, loses half its market cap
Ezz Steel, recognized as the largest independent steel producer in the Middle East and North Africa, has previously boasted robust financial performance, instilling confidence among investors. With an impressive total output of 5.14 million metric tonnes, Ezz Steel has consistently outpaced competitors such as Saudi Arabia’s Hadeed and Emirates Steel.
Ezz, a leading Egyptian tycoon, owns a 60.7 percent stake in the steel giant, equating to 329,816,198 shares. This stake solidifies his position as a major investor in the Egyptian Exchange but also cements his status as one of the country’s wealthiest individuals.
Since Feb. 21, Ezz Steel shares have experienced a double-digit decline on the Egyptian Exchange. This downturn, compounded by the devaluation of the Egyptian pound, has sliced the company’s market capitalization by half, from $1.42 billion to $722.06 million, resulting in significant losses for shareholders.
Ahmed Ezz’s stake in Ezz Steel plunges by $422 million
The combined impact of the share price slump and currency devaluation has led to a decrease in the market value of Ezz’s stake, amounting to EGP 6.19 billion ($422.38 million). The market value of his stake has declined from EGP26.64 billion ($860.71 million) on Feb. 21 to EGP 20.45 billion ($438.34 million) at the time of drafting this report.
Despite this significant downturn, Ezz remains a top figure in Egypt’s business landscape. His resilience in navigating the complexities of emerging markets underscores his enduring significance in the realm of industrial investment.Â
