Juhayna studying IPO go-ahead after fire
Cairo, April 28, 2010
Egyptian dairy and juice maker Juhayna Food Industries said on Wednesday it was still deciding whether to go ahead with its initial public offering (IPO) after a fire in one of its factories caused major losses.
The fire that broke out last Thursday at Juhayna's 'Egyfood' factory on the outskirts of Cairo damaged buildings and equipment. Production has been halted at the factory, which cost EGP300 million ($54.13 million).
Asked about the IPO, associate director Heba Thabet said: 'A decision is not taken yet about the IPO. We are at a very early stage of a recovery process that comes as a top priority for the time being.'
'There is a board meeting next week, and accordingly the IPO state will be determined and declared,' she told Reuters.
A number of firms are considering IPOs on the Egyptian Exchange, where shares, recovering from the global credit crunch, have surged to their highest levels since September 2008. The last IPO on the Egyptian bourse was in mid-2008.
The Juhayna factory, which made yoghurt and yoghurt-based products, represented 18 per cent of Juhayna's production capacity.
The firm had not calculated the loss, but estimated it at 85-90 per cent of the factory's value, Thabet said.
Juhayna Food Industries makes milk, dairy products and juices, with export markets across Africa and the Middle East. Its clients include McDonald's, the firm's website says.-Reuters
More Miscellaneous Stories
- UAE pulls out of $9.8bn Eurofighter deal
- Saudi's inaugural food expo 'a big hit'
- One million Gazans in need of food aid says UN
- US burger chain to open outlets in Saudi
- $350,000 raised at Dubai charity event
- 2013 deadliest for desperate migrants, says report
- Bahrain sees 25pc drop in fires
- 4,500 to exhibit at Dubai food show
- Northrop Grumman names new Saudi head
- 1,500 delegates at Ajman networking event