Well, that didn’t go to plan:Taqa Arabia’s debut yesterday as a publicly-traded company got off to a chaotic start as its shares closed up more than 83,000%. That prompted the EGX to roll back all of the day’s transactions and say it would give the company a second debut this morning.

Wait, 83,000%? The EGX usually only allows shares to rise or fall by 20% in a session before circuit breakers kick in and suspend trading. But in a decision announcedlast week, the bourse suspended the rules for the first day of dealing in Taqa shares, exposing the company’s stock to the volatility we saw yesterday.

Taqa = four CIBs:Taqa’s shares debuted on the exchange at their nominal EGP 0.50 price but soon rocketed almost 100,000% to EGP 500 before falling back to close at EGP 418.45. This left the company with a market cap of around EGP 566 bn — almost four times the valuation of CIB, the largest component of the benchmark EGX30.

What was Taqa Arabia worth before the listing? Its shares were worth EGP 8.90 apiece according to an independent valuation ahead of its debut, implying the company was worth EGP 12 bn (USD 393 mn) before public investors got the chance to weigh in.

Ctrl-alt-delete: In a statement after market close, the EGX said it would cancel all of the day’s dealings in Taqa shares.

It’s back to the drawing board this morning: Taqa’s shares will begin trading back at their EGP 0.50 book price at the opening bell today.

Remember: Taqa is a technical listing, not an IPO. The company’s shares have been made tradeable on the EGX, but there was no offering of equity (primary or secondary) arranged by existing shareholders prior to the listing. A technical listing simply makes it possible for shareholders pre-transaction to start offering shares for sale to other investors via the EGX.

The expectation was always that relatively few shareholders (compared to a “full” IPO) would choose to sell, given investment bankers didn’t have a mandate to widely market the sale to new investors, let alone engage to create a stabilization fund — or any of the other accouterments usually associated with an EGX debut.

So, what happened? In short: Few trades x big share price = outsized impact.The EGX attributed the surge in Taqa shares to 75 transactions worth just EGP 395k that it said were executed by mistake, which local media is reporting involved just 1,362 shares. A number of local and regional outlets are quoting traders saying that several trades were executed at between EGP 380 and EGP 500, triggering the surge in the company’s share price.

EGX boss Ramy El Dokany made substantially the same point on Amr Adib’s show last night, saying the bourse authorized today’s re-do at the request of brokerage companies. A number of day-traders placed online orders at EGP 500 per share, he said (watch, runtime: 11:02).

And price limits are reportedly still off the table: The EGX isn’t planning to reverse its decision to lift its circuit breaker during trading today, according to Al Masry Al Youm, which cites a source saying that no price limits will be in effect.

Advisors: EFG Hermes is quarterbacking the transaction, while Zulficar & Partners are providing counsel. Baker Tilly is the independent financial advisor and PwC is the auditor.

BACKGROUND: The Qalaa Holdings subsidiary is selling shares to public investors via a direct offering, rather than going the conventional IPO route. It listed its 1.35 bn shares on the exchange at a nominal value of EGP 0.50. It is trading under the ticker TAQA. The company published a statement (pdf) ahead of ringing the opening bell.

The energy distribution company is the first newcomer to the EGX this year, ending a drought of fresh listings triggered by the country’s economic crisis and global market volatility sparked by Russia’s war in Ukraine. The government is hoping to sell shares in several companies to the public in the coming months, includingtwo firms owned by the Suez Canal Authority, as part of its privatization agenda.

ALSO FROM TAQA-

Taqa wants to double its network of filling stations to 250 locations within the next two years, the company’s CEO, Pakinam Kafafi, told Asharq Business in an interview yesterday (watch, runtime: 2:08).

Adding a new line of business: The company has acquired an EV charging license and is currently installing some 250 chargers it has purchased, said Kafafi.

Expansion plans: Taqa will establish its first gas station in Tanzania in 4Q 2023. It has already signed a definitive agreement with a Saudi partner to establish a new company in the kingdom, Kafafi added.

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