Egypt: Spinalex's EGM greenlights capital hike
Arab Finance: Alexandria Spinning and Weaving Company's (Spinalex) extraordinary general meeting (EGM) agreed to increase its issued capital to EGP 721.441 million from EGP 641.281 million, as per a bourse disclosure.
The company will raise its capital by EGP 80.160 million distributed over 40.08 million shares, with a nominal value of EGP 2 per share.
The capital hike will be financed from the company's retained earnings per the period ended June 30th, 2024.
In the first half (H1) of fiscal year (FY) 2024/25, the EGX-listed firm's net profits plunged by 94% to EGP 4.152 million from EGP 73.709 million in H1 FY2023/24.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a day ago
- Zawya
Egypt: Qalaa Holdings to raise authorized capital to $1bln
Arab Finance: Qalaa Holdings' board of directors approved increasing the authorized capital from EGP 10 billion to EGP 50 billion, as per a bourse filing issued on June 12 th. The capital hike aims to secure procedural flexibility to allow the rapid issuance of new shares as needed. Additionally, the EGX-listed firm will raise its issued capital by EGP 14 billion from EGP 9.10 billion to EGP 23.10 billion through a cash contribution at par value, for both common and preferred shares. Qalaa Holdings will issue 2.80 billion new shares, representing 2.181 billion common shares and 618.059 million preferred shares, each with a nominal value of EGP 5. Following the transaction, the new capital will be divided into 4.62 billion shares, instead of 1.82 billion shares. The increase will be allocated to existing shareholders pro rata to their ownership in the issued capital as of a record date, which is set to be determined. The company provided an option to utilize shareholders' credit balances to subscribe for new shares, whether during the first or second subscription rounds. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
a day ago
- Zawya
Egypt: Finance Ministry refutes 174.4M-sqm-land sale claims
Arab Finance: Egypt's Ministry of Finance confirmed that the 174.4 million square meters of land allocated along the Red Sea will be developed, refuting claims that it will be sold, as per a statement. This is part of an initiative to facilitate the issuance of sovereign sukuk. The state will retain ownership of the land, of which a portion will be utilized to reduce government debt by entering partnerships and joint investment deals with government agencies and economic entities. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arabian Post
2 days ago
- Arabian Post
IFA Hotels to Raise Capital for ₫56m Debt Settlement
IFA Hotels & Resorts, the hospitality arm of Dubai-listed International Financial Advisors Holding Company, has received board approval to increase its capital. The move, sanctioned on 11 June, aims to address borrowings totalling more than KWD 17.3 million, according to the parent company's announcement. The proposed capital raise follows IFA Hotels' earlier struggles with mounting liabilities. Listing on the Kuwait Stock Exchange, IFA Hotels specialises in developing, managing and marketing hotels and resorts. The fresh funds will be used exclusively to settle its outstanding debts, ensuring compliance with regulatory frameworks and shoring up its balance sheet. IFA Holding confirmed that the capital hike is contingent on the hospitality unit completing several procedural steps, including updating registration documents and obtaining regulatory clearance within Kuwait and the UAE. No final timeline for the completion of these formalities was disclosed. ADVERTISEMENT Financial context underpins the urgency of the capital increase. IFA Hotels reported shareholders' equity of approximately KWD 101.4 million in a prior period—reflecting a 50 per cent rise year‑on‑year. Nevertheless, liabilities had also risen, prompting management to strengthen the capital structure and tackle debt directly. Market analysts view the measure as a strategic pivot. By injecting fresh capital, IFA Hotels can enhance its financial stability and protect its operations amid a challenging economic environment for the hospitality sector. Regional hotel developers have faced headwinds from fluctuating tourism demand, especially as global recovery stalls and inflation dampens consumer spending. IFA Holding's actions echo trends across the Gulf. Other firms have employed similar financial strategies—namely, targeted capital hikes—to reinforce their balance sheets. For instance, EFG Holding's hospitality unit, ICON Group, completed a major acquisition in early 2024 after raising equity through institutional investors. IFA Holding's broader strategy remains expansion‑oriented, with investment across banking, asset management, real estate and hospitality. The group's regional affiliate, Al‑Bahar, has emerged as a strategic ally, maintaining strong ties with IFA's hospitality division and other financial affiliates. The capital increase aligns with IFA Hotels' earlier reported profitability. In Q1 2025, the company delivered a net profit of KWD 11.5 million—an improvement from KWD 3.3 million in Q4 2024. The favourable earnings trajectory suggests that addressing legacy debt could support sustained operational growth. IFA's management emphasised that the capital hike is narrowly defined, with funds allocated solely to debt servicing. This approach sidesteps dilution risks for existing shareholders and aims to reassure investors that the firm intends to honour its financial commitments without expanding its debt load. Some stakeholders caution, however, that execution risks may arise in navigating regulatory approvals and ensuring timely disbursement of funds. Both Kuwait's Capital Markets Authority and relevant UAE regulators must sign off before the capital increase becomes operational. Market watchers will monitor IFA Hotels' next steps, particularly whether the firm may explore asset sales or strategic partnerships to complement the equity infusion. The hospitality sector in the Gulf continues to exhibit resilience, supported by government initiatives, domestic tourism campaigns and easing of pandemic-related restrictions. Against this backdrop, resolving debt issues could position IFA Hotels to capitalise on rising demand and re‑energised investor interest in regional hospitality assets. IFA Holding stressed that a successful capital increase would not only settle the indebtedness but also signal to markets a renewed commitment to financial responsibility and corporate governance. That assurance could enhance confidence in the wider group's strategy of diversification and disciplined growth.
