Egyptian multimillionaire Ahmed Ezz, founder of Ezz Steel, has seen his wealth decline as the company’s share price falls. The stock of the leading steel producer has dropped more than 6 percent in recent days.
According to data tracked by Billionaires.Africa, Ezz’s stake in Ezz Steel has declined by EGP1.36 billion ($28.18 million) in just four days, reflecting a trend of investors offloading their holdings in the company.
Ezz Steel dominates MENA market
Ezz Steel, the leading steel producer in the Middle East and North Africa (MENA), boasts a robust production capacity of 7 million tons per year across its state-of-the-art plants in Egypt. This output, exceeding 5 million metric tonnes, surpasses regional competitors like Saudi Arabia’s Hadeed and Emirates Steel.
Ahmed Ezz, a prominent figure in the steel industry, holds a significant 60.7-percent stake (329,816,198 shares) in Ezz Steel. This translates to major influence on the Egyptian Exchange and positions him among Egypt’s wealthiest individuals.
Since April 17, the company’s shares on the Egyptian Exchange have declined by 6.26 percent, dropping from EGP 65.96 ($1.365) to EGP 61.83 ($1.279). This decline pushed market capitalization below $700 million, resulting in substantial financial losses for all shareholders, including Ahmed Ezz.
Ahmed Ezz’s stake slumps by $28 million
The sustained decline in Ezz Steel’s share price has caused the market value of Ezz’s stake to fall by R1.36 million ($28.18 million). On April 17, his holding was valued at R21.75 billion ($450.15 million). As of this report, it stands at R20.39 billion ($421.97 million).
Despite the drop in his stake’s value, Ezz remains a prominent figure in Egyptian business and a leading investor on the Egyptian Exchange.
In a recent development, Ezz Steel has further reduced rebar prices by 12.5 percent. This marks the second price cut within three weeks, underscoring a bold strategy in the volatile steel market.
