Egypt’s Ghabbour family has gained EGP247.73 million ($15.8 million) in the past 11 days from their stake in GB Auto.
GB Auto is an Egyptian manufacturer of automobiles, buses, trucks and motorcycles founded by Kamal and Sadek Ghabbour in 1960. Since then, the company has grown into the largest automobile manufacturer in Egypt under the Ghabbour Group.
The wealthy Ghabbour family holds a majority 62.9-percent stake in the leading auto manufacturer.
The recent gain in the market value of their stake can be linked to the performance of the company’s shares in the past 11 days as investors renewed interest in the automaker after its share price on the Egyptian Stock Exchange plummeted below EGP3.7 ($0.232) per share.
Data retrieved by Billionaires.Africa revealed that shares in the Egypt-based automaker were worth EGP4.01 ($0.255) per share as of press time, Dec. 4, 282-basis points higher than their opening price for the week.
As a result of the renewed buying interest in the automaker, its stock price soared by 10 percent from a valuation of EGP3.65 ($0.232) per share on Nov. 22, to a price of EGP4.01 ($0.255) per share as of the time of writing.
Meanwhile, the market value of the Ghabbour family’s stake in the automaker increased from EGP2.51 billion ($159.91 million) to EGP2.76 billion ($175.69 million), accruing total gains of EGP247.73 million ($15.8 million) for the family in 11 days.
So far this year, the valuation of GB Auto and the market value of the family’s stake in the company is up by nearly 21 percent.
The company’s stock performance in 2021 can be linked to its robust financial performance during the year.
Figures contained in its first-nine-month financial report for 2021 revealed that its revenue rose by 39 percent to EGP22.4 billion, while its net income increased by 59.8 percent to EgP1.01 billion.
The robust performance can be linked to the benefits that the company reaped from operational efficiency initiatives, operational leverage from higher revenues and the overall improved demand in the period.
