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Egyptian steel magnate Ahmed Ezz, founder of Ezz Steel, has seen his fortune suffer another blow as his stake in the leading steel conglomerate slumped by more than $35 million in the past two weeks.
According to data tracked by Billionaires.Africa, the market value of Ezz’s stake in Ezz Steel has declined by EGP1.72 billion ($35.94 million) over the past 15 days attributed to selling pressure on the Egyptian Exchange, which has driven down the company’s stock price by roughly 8 percent.
Ezz Steel’s recent stock volatility stems from multiple factors, including investors’ reaction to its EGP717 million ($15 million) net loss in fiscal 2023, price cuts for its steel products, and the significant impact of currency fluctuations and economic conditions on its operations.
Ezz Steel share price drops, market cap below $690 million
Ezz Steel, the Middle East, and North Africa’s (MENA) leading steel producer, boasts a robust seven-million-tonne annual production capacity across its state-of-the-art Egyptian plants.
Egyptian billionaire and prominent industrialist Ahmed Ezz owns 60.7 percent of Ezz Steel, translating to 329,816,198 shares. The company’s output surpasses regional peers like Saudi Arabia’s Hadeed and Emirates Steel, exceeding 5 million metric tons annually.
Ezz Steel’s shares closed at EGP65.5 ($1.369) on April 22 and had declined to EGP60.3 ($1.265) at the time of drafting this report, representing a 7.94 percent decline in its share price. The dip has pushed market capitalization below $690 million.
Ahmed Ezz’s stake slumps below $420 million
As a result of the recent decline in Ezz Steel’s shares, Ahmed Ezz’s stake in the group has fallen by EGP 1.72 billion ($35.94 million) from EGP 21.6 billion ($452.71) on April 22 to EGP 19.88 billion ($416.77) at the time of writing.
Despite facing financial setbacks, Ezz continues to hold his position as a prominent investor on the Egyptian Exchange and remains one of Egypt’s wealthiest individuals.
