|Solidere announces bloc trade of 4.51 million local shares
|The giant real estate company Solidere announced a bloc trade of 4.51 million local shares valued at $94 million on Thursday as part of an effort to increase its shares of market liquidity on the Beirut Stock Exchange (BSE). This secondary sale of shares was marketed through an extensive management road show that targeted investors in Lebanon, the U.K., the U.S. and the Gulf.
"The success of the transaction was demonstrated by the size of the demand which generated an order book worth more than $380 million, or four more times oversubscribed," the company said in a statement.
It added that almost all of the orders were generated from outside Lebanon highlighting the growing investor interest in Lebanon in general and in the SOLIDERE story specifically.
EFG-Hermes Investment Banking acted as Sole Financial Advisor to SOLIDERE on this transaction.
"As the Lebanese market's biggest company in terms of market capitalization, the company's share has suffered from illiquidity of its stock on the local market, which had a direct impact on the secondary listings" the company said
In 2005, the daily average trading volume for SOLIDERE shares was 138,000 for tranche A and 104,000 shares for tranche B. Since the start of the road show, the daily trading volume on the BSE jumped 4.3 times to 590,000 shares for tranche A and 2.6 times to 270,000 shares for tranche B. The high over-subscription and strong investor demand are expected to help the liquidity of the stock going forward.
Solidere dominate the value and volume of trading on the BSE and analysts believe that prices of the company's stocks will continue to rise despite the negative political atmosphere. Prices of Solidere A and B shares are now trading between $24 and $25 per stock.
The company made a net profit of $21 million in the first half of 2005, more than the entire net income for 2004.
The Daily Star