Table of Contents
Key Points
- Ahmed Ezz’s Ezz Steel stake rebounds above $700 million following a surge in share price.
- Ezz Steel shares have surged 17.2% in the past week, lifting market cap above $1 billion.
- Despite an 6.81% increase in local currency terms, Ezz Steel’s gains were offset by a 33.06 % loss due to Egyptian pound devaluation.
Egyptian billionaire Ahmed Ezz, the founder of Ezz Steel, has witnessed a notable resurgence in his wealth, with the market value of his stake in Egypt’s leading steel producer rebounding above $700 million. This notable uptick is attributed to a recent rally in Ezz Steel’s share price.
Ezz’s stake in Ezz Steel has grown by EGP5.24 billion ($104.26 million) over the past week. This follows an earlier increase of $18.2 million between July 16 and 31, when his stake climbed from EGP28.9 billion ($595.9 million) to EGP29.8 billion ($614.1 million).
Ezz Steel shares skyrocket, market cap surpasses $1 billion
Ezz Steel, the leading steel producer in the Middle East and North Africa (MENA), boasts a substantial production capacity of 7 million tons per year across its state-of-the-art Egyptian facilities. With an output exceeding 5 million metric tonnes annually, Ezz Steel outpaces regional competitors such as Saudi Arabia’s Hadeed and Emirates Steel.
In the past week, Ezz Steel shares on the Egyptian Exchange (EGX) have surged by 17 percent, climbing from EGP82.7 ($1.68) on Aug. 5 to EGP96.5 ($2.02). This surge has elevated the company’s market capitalization above $1 billion, yielding significant gains for shareholders.
Ahmed Ezz’s Steel stake soars above $700 million
Ahmed Ezz, a top figure in the steel industry, holds a 66.45 percent stake (360,986,470 shares) in Ezz Steel. This stake not only positions him as one of the richest investors on the Egyptian Exchange but also as one of the wealthiest individuals in Egypt.
The recent rise in Ezz Steel’s share price has propelled the market value of Ezz’s stake up by EGP5.24 billion ($104.26 million), from EGP29.85 billion ($605.48 million) on Aug. 5 to EGP35 billion ($710 million) at the time of this report.
Your Money and Your Life: Investment caution advised
Despite a 6.81 percent rise in its stock price this year, Ezz Steel’s gains have been offset by the devaluation of the Egyptian pound.
The currency’s depreciation has led to a 33.06 percent loss in value. A $100,000 investment in Ezz Steel at the start of the year is now worth $66,940, reflecting a $33,060 loss.
