Taqa Arabia had a decidedly less chaotic second day of trading on the Egyptian Exchange yesterday, with the company’s shares avoiding the dramatic fluctuations seen on Sunday and only a few transactions reportedly being canceled by the Egyptian bourse. The company’s share price jumped 3,900% to close at EGP 20, a percentage change magnified by the fact they opened at their nominal value of just EGP 0.50. Shares were valued at EGP 8.90 apiece ahead of the listing. Trading was moderate, with 801k of the company’s shares changing hands via 843 transactions for a combined EGP 15.7 mn according to EGX data.

The first debut: Taqa shares closed up 83,000% on Sunday, which the EGX attributed to 75 transactions worth just EGP 395k that it said were executed by mistake. A number of local and regional outlets quoted traders saying that several trades were executed at between EGP 380 and EGP 500 which was confirmed later by EGX boss Ramy El Dokany, triggering the surge in the company’s share price.

All transactions were canceled on Monday, but one: A block transaction was executed on Monday involving the sale of EGP 3.7 bn worth of shares by the company’s largest shareholder Silverstone Capital Investments — an entity controlled by Taqa parent Qalaa Holdings — to existing shareholders including Financial Holdings Investments, and Rimco EGT Investments, according to three separate disclosures to the EGX (here, here and here — pdfs).

Silverstone offloads 60% of its shares in Taqa Arabia: Silverstone’s ownership decreased to 49%, down from 80%, after selling 192.4 mn shares to Financial Holdings Investments whose ownership increased to 17.8%, up from 3.6%. Silverstone also sold 194 mn shares to Rimco whose ownership rose to 14.5%, up from 0.2%. Both transactions were executed at EGP 8.9 per-share.

Advisors: EFG Hermes quarterbacked the transaction, while Zulficar & Partners provided counsel. Baker Tilly was the independent financial advisor and PwC was the auditor.

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