Digitize insiders sold 5.46 mn shares through eight months of falling prices

Nine insider sale filings since late December have taken five Digitize shareholders below the 5% mark that brings them inside the exchange’s dealing-disclosure regime, and cut the chairman’s related group from 30.33% to 26.46%, according to Article 29 disclosures reviewed by EnterpriseAM. The nine filings cover roughly 5.46 mn shares for EGP 16.26 mn by our math. The Financial Regulatory Authority (FRA) sanctioned the company in November and publicly warned (pdf) investors to approach it with caution over eleven findings from a field and desk examination.

IN CONTEXT- Late last year, the FRA refused to clear the disclosure report Digitize needed to call an EGM on raising issued capital to EGP 210 mn from EGP 108 mn and authorized capital to EGP 1 bn from EGP 500 mn. The refusal came after inspectors visited the Sheikh Zayed address the company had on the exchange’s screens and found no office there. The regulator noted the investor relations manager position had changed hands seven times since the start of 2023, with four changes occurring in the last year. The FRA stripped the stock of margin trading and both same-session and next-day settlement from 4 December and told the exchange to consider moving the shares to the non-active market. The refusal stands until the company remedies the findings.

No sale printed higher than the one before it. Ahmed Mohamed Abdel Kader went out at an average EGP 4.53 in December, Kamal Nagib Helal at EGP 3.56 in February, and Chairman Yousry Atlam at EGP 3.10 in early March. Atlam sold twice more at EGP 2.80, and Ahmed Fouad Fahmy at the same price in mid-March. Zakaria Badran took EGP 2.67 in May, and El Metwakel Ala Allah Gomaa EGP 2.63 in July and EGP 2.60 on 24 August. That’s a 42.6% slide in insider exit prices in eight months, all of it off the average-price field on the filings.

Atlam accounted for the largest single block. He sold around 473k shares on 3 March and 350k on 19 April, and reported a 1.2 mn-share sale on 17 March that took him from 12.76% to 11.45% — a drop that works out closer to 1.42 mn shares against the company’s 108 mn issued, by our math. His holding now stands at 11.13% against 13.20% in early March. His fellow board members were selling alongside him: the related-party column on the April filing puts Ahmed Atlam at 7.10% against 7.61% in March, and Seham Osman at 4.2% falling to 3.92% against 4.54%. Both sit on the board as non-executives.

Disclosure failures

Abdel Kader’s December sale didn’t reach the bourse until February. In a letter to the EGX (pdf) dated 11 February, Al Ahly Pharos Securities Brokerage said it had no knowledge of its client’s related-group position, and that the client had understood the Article 29 obligation to bite only once his own stake and the group’s together crossed the prescribed limits. The trade had been executed on 21 December, seven weeks earlier.

That’s a disclosure failure by a major shareholder in a company already sanctioned for disclosure failures. The listing committee has fined Digitize four times since early July, EGP 110k in six weeks, once for failing to hold its general meeting and twice for financial statements it still hasn’t filed, and the overdue list has grown at each session.

ALSO- Three reporting periods are now outstanding. Digitize hasn’t filed audited FY 2025 statements, 1Q 2026, or 2Q 2026, the last of which was due in mid-August under the 45-day rule. The most recent numbers on the screens cover the nine months to 30 September 2025, showing consolidated net profit of EGP 16.71 mn and equity of EGP 163.9 mn, and they only landed on 25 December, three weeks after the FRA published its findings. Everyone who bought into the widening float this year did so on figures that are now eleven months old.

Retail took the other side

The float widened while the board sold. Free-float shares rose to 61.77% from 56.98% over the second quarter and the shareholder register grew to 4.15k holders from 3.8k, according to the company’s Article 30 report for the period (pdf).

ICYMI- Digitize came to the main market in May 2024, one of five companies to make the transition at that point. Atlam said at the time the move would open access to a wider market to fund the company’s expansion.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)