The once-billion-dollar fortune of Egypt’s El-Sewedy family has taken a significant hit after a sharp decline in Elsewedy Electric, the family’s crown jewel. A two-week market downturn has pushed the company’s share price down 25 percent, eroding El-Sewedys’ controlling stake by EGP5.36 billion ($324.08 million).
This plunge has ejected the El-Sewedys from the ranks of Egypt’s billionaires. Their 68.1-percent stake in Elsewedy Electric, once valued at EGP61.34 billion ($1.29 billion) on March 14, has declined to EGP45.98 billion ($970.05 million) at the time of drafting this report. The company’s market capitalization has also dipped below the $1.5-billion mark.
Investor confidence shaken
The recent market turbulence has been the primary culprit behind Elsewedy Electric’s woes. Investor confidence has been shaken, leading to a rapid decline in the company’s stock value. Ahmed El-Sewedy and his siblings, Sadek and Mohammed, who control the company, have borne the brunt of this decline.
Founded in 1938, Elsewedy Electric has long been a titan of the Egyptian electrical equipment sector, contributing significantly to projects across the Middle East and North Africa. However, this recent market turmoil casts a shadow on the company’s future prospects.
Egypt’s El-Sewedy family: Still wealthy, but not billionaires
While the El-Sewedy family has undoubtedly suffered a financial setback, it’s important to note that they remain prominent investors in the Egyptian Exchange. While they’ve exited the billionaire ranks, they continue to be among the richest in Egypt and North Africa.
Elsewedy Electric’s future and the El-Sewedy family’s fortune hinge on the company’s ability to navigate the current market climate and restore investor confidence.
