"Administrative Capital" Targets 400 EGP per Share in Its Public Offering

Khaled Abbas, Chairman of the Administrative Capital for Urban Development, said the company expects a price around 400 EGP per share when listing on the Egyptian Exchange, compared to a previous estimate of about 100 EGP per share, in a television interview reported by Enterprise, Masrawy, and Asharq platforms.

Abbas explained that reevaluating the company's assets could raise its total value to nearly one trillion EGP, equivalent to about 2.5 billion shares at this valuation. The target price was based on record results, as the company recorded a net income of 45 billion EGP in 2025 and generated 133 billion EGP in pre-tax income over ten years, paying 37 billion EGP in taxes to the state.

The company distributed about 100 billion EGP to its three shareholders, most notably the Ministries of Defense and Housing, and invested about 220 billion EGP in infrastructure and construction, according to Abbas, who said these investments were self-financed without bank or government loans. He noted that land prices in the Administrative Capital rose from 2.5 thousand EGP per square meter in the first residential offering to between 10 thousand and 12 thousand EGP currently, with commercial space prices in the towers zone exceeding 70 thousand EGP per square meter.

Abbas said the company has resumed work on the offering and hopes to complete arrangements during 2026, while the decision regarding timing and structure remains with the owners. The company is studying three options: floating the parent company, floating one or more subsidiaries, or creating a dedicated entity for the second phase, amid estimates that a 5% stake alone could exceed the capacity of the Egyptian Exchange, opening the door for a dual or international listing.

What do these terms mean?

Initial Public Offering (IPO): Selling company shares to the public for the first time and listing them on the stock exchange, allowing the company to raise funds from investors in exchange for equity stakes.

Revaluation: Re-estimating the value of a company's assets or business at current market prices, which may raise its book value and consequently the expected share price in the offering.

Dual Listing: Listing a company's shares on more than one stock exchange simultaneously, granting access to investors in different markets.