Key Points:
- Steel giant’s share price surge boosts founder Ahmed Ezz’s wealth by over $110 million in nine days.
- Ezz Steel’s share price jumps 27 percent, pushing market cap above $860 million.
- Despite Ezz’s recent gains, Ezz Steel shares are down 45.9 percent year-to-date, highlighting investment risks.
Egyptian businessman Ahmed Ezz, the founder of Ezz Steel, Egypt’s leading steel producer, has seen his wealth surge over $110 million in the past nine days due to the recent rally in the steel company’s share price.
According to data tracked by Billionaires.Africa, Ezz’s stake in Ezz Steel has climbed EGP5.28 billion ($113.13 million) over the past nine days.
This follows a prior decline of $35.9 million between April 22 and May 7, when his stake fell from EGP21.6 billion ($452.71 million) to EGP19.88 billion ($416.77 million).
Ezz Steel’s market cap hits $860 million
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. Its output, exceeding 5 million metric tonnes, surpasses regional competitors like Saudi Arabia’s Hadeed and Emirates Steel.
Ezz Steel shares on the Egyptian Exchange surged by 27.12 percent recently, rising from EGP59 ($1.26) on May 12 to EGP75 ($1.61) at the time of writing. This increase has pushed the company’s market cap above $860 million, resulting in significant gains for shareholders.
Ahmed Ezz’s Ezz Steel stake skyrockets above $530 million
Ahmed Ezz, a prominent figure in the steel industry, holds a significant 60.7-percent stake (329,816,198) shares in Ezz Steel. This makes him one of the richest investors on the Egyptian Exchange and positions him among Egypt’s wealthiest individuals.
Due to the share price increase, the market value of Ezz’s stake in Ezz Steel has risen by EGP5.28 billion ($113.13 million) over the past nine days, growing from EGP19.46 billion ($417.16 million) on May 12 to EGP24.74 billion ($530.28 million).
The recent rebound in Ezz’s fortune cements his position as one of the richest investors in the Egyptian Exchange and also as one of the richest businessmen in the country.
Your Money and Your Life: Investment risks
While Ezz’s wealth has soared recently due to his Ezz Steel stake, investors seeking to build fortunes through listed company shares should approach Ezz Steel with caution.
Ezz Steel’s shares have declined by 18.46 percent year-to-date. Factoring in the devaluation of the Egyptian pound, this translates to a total value decline of 45.9 percent.
Investors who purchased the steel company’s shares at the beginning of the year are presently facing a loss of nearly 18.5 percent in local currency terms and 45.9 percent after accounting for devaluation.
A $100,000 investment in Ezz Steel at the start of the year would now be worth $54,090, reflecting a total loss of $45,910. Investors are urged to consider these risks before investing in the company.
