Home » Medhat Khalil reduces ownership stake in Raya Holding by 15 million shares

Medhat Khalil reduces ownership stake in Raya Holding by 15 million shares

Chairman Medhat Khalil lowers stake in Raya Holding, showcasing dynamic changes in Egypt's financial sector

by Oluwatosin Racheal Alabi
Medhat Khalil

Key Points

  • Medhat Mohamed Ibrahim Khalil reduced his stake in Raya Holding from 18.37 to 17.67 percent by selling 15 million shares for EGP 15.99 million ($332,592).
  • Raya Holding reported a Q1 2024 consolidated net profit of EGP 330.95 million ($6.88 million), higher than the EGP 142.97 million ($2.98 million) in Q1 2023, while standalone results showed a net loss of EGP 173.38 million ($3.61 million).
  • Raya Holding’s share price surged by 15.1 percent, increasing the market value of Khalil’s stake by EGP 191.93 million ($4.02 million).

Medhat Mohamed Ibrahim Khalil, chairman of Raya Holding for Financial Investment, has reduced his stake in the company from 18.37 to 17.67 percent. This transaction involved the sale of 15 million shares, totaling EGP 15.99 million ($332,592) at a nominal value of EGP 3.99 ($0.083) per share, according to a bourse disclosure.

    The sale, which was brokered by Al Ahly Pharos for Securities Brokerage, was concluded on June 24, 2024.

    Financial Performance

    In the first quarter (Q1) of 2024, Raya Holding reported a consolidated net profit after tax and minority interest of EGP 330.95 million ($6.88 million), higher than the EGP 142.97 million ($2.98 million) recorded in Q1 2023.

    However, the standalone business results for Q1 2024 showed a different picture, with Raya Holding recording net losses of EGP 173.38 million ($3.61 million), a significant decline compared to the net profits of EGP 216.56 million ($4.51 million) during the same period in 2023. This contrast underscores the challenges and complexities within the company’s operations.

    Khalil’s decision to reduce his stake in Raya Holding comes at a time of a major financial activity within the company. While the consolidated financial results are positive, the standalone losses reflect ongoing operational challenges that the company needs to address.

    Raya Holding’s 15.1-percent surge in share price

    Founded in 1999 through a merger of Khalil’s entities and the Orascom Group, Raya Holding is a top player in Egypt’s investment landscape. The company’s share price has jumped from EGP 3.31 ($0.069) on June 9 to EGP 3.81 ($0.08), pushing the company’s market cap above $170 million and providing substantial returns to shareholders.

    The market value of Khalil’s 18.37-percent stake, amounting to 383,851,916.40 shares, in June rose by by EGP 191.93 million ($4.02 million), from EGP 1.27 billion ($26.63 million) to EGP 1.46 billion ($30.66 million).

    Medhat reduction in stake and the financial movements within Raya Holding shows the dynamic nature of the company’s operations and market presence. With strong consolidated financial performance yet challenges in standalone results, the company’s future activities will be closely watched by investors and market analysts.

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