Egyptian developer Palm Hills Developments shareholders bought about 99 per cent of the shares on offer in a EGP699 million ($127 million) rights issue, the company said.

Palm Hills plans to use the issue's proceeds to speed up construction and expand into hotels and other sectors, shielding it from home sales volatility, it has said.

"The subscription was 98.97 per cent," chief financial officer Ihab Swellem told Reuters, adding the firm will reopen the issue to cover the unsubscribed portion from April 13-15.

Egyptian daily al-Mal had reported earlier on Sunday the rights issue was 95 per cent subscribed, quoting unnamed sources close to the issue.

Under the rights issue, which closed on April 6, each shareholder is entitled to one share at EGP2 each for every two shares held, Palm Hills has said.

Palm Hills shares closed at EGP6.61 pounds, down 0.9 per cent. Egypt's main index rose 2.8 per cent. – TradeArabia News Service