Key Points:
- Ezz Steel founder Ahmed Ezz’s stake surges $34.7 million in two days as value investors flock to the leading steel producer on the Egyptian Exchange.
- Shares climbed 6.29% in the last 48 hours, pushing market cap above $960 million.
- Despite recent gains, Ezz Steel shares on the Egyptian Exchange are down 40% YTD due to currency depreciation.Â
Ahmed Ezz, the prominent Egyptian businessman and founder of Ezz Steel, has witnessed a remarkable increase in the market value of his stake in the leading steel producer, driven by heightened interest from value investors on the Egyptian Exchange.
According to data from Billionaires.Africa, Ahmed Ezz’s stake in Ezz Steel has soared by EGP1.67 billion ($34.73 million) over just two days. This follows an earlier gain of $45 million between June 9 and 17, propelling his stake from EGP23.75 billion ($497.7 million) to EGP 25.89 billion ($542.67 million).
Ezz Steel: A dominant force in the industry
Ezz Steel, renowned for its annual production capacity of 7 million tons, stands as the largest iron and steel producer in the Middle East and Africa and ranks 60th globally. Surpassing competitors such as Saudi Arabia’s Hadeed and Emirates Steel, Ezz Steel consistently exceeds 5 million metric tonnes annually, reinforcing its leadership position.
The surge in Ezz Steel’s share price on the EGX reflects its robust performance, with shares climbing 6.29 percent in just two days, rising from EGP 80.41 ($1.67) on June 24 to EGP 85.47 ($1.78) presently. This increase has propelled the company’s market capitalization beyond $960 million, generating significant returns for shareholders, including Ahmed Ezz.
Ahmed Ezz: Beneficiary of recent market rally
As a major shareholder holding a 60.7-percent stake (329,816,198 shares) in Ezz Steel, Ahmed Ezz has notably benefited from the recent market rally. The surge in share price has bolstered the market value of his stake by EGP1.67 billion ($34.73 million), increasing from EGP26.52 billion ($551.9 million) on June 24 to EGP28.19 billion ($586.63 million) at present.
Your Money and Your Life
Ezz Steel’s shares have posted year-to-date losses despite recent gains. The stock is down 7.1 percent in Egyptian pound terms, but factoring in currency depreciation, the decline widens to 40.16 percent. Investors who bought in at the beginning of 2024 are facing significant losses.
A $100,000 investment then would now be worth only $59,840, a loss of $40,160. This underscores the importance of considering long-term trends and currency risks before making investment decisions.
