Arabia Investments, Development and Financial Investment Holding Co. says it is studying an initial public offering (IPO) for subsidiary Cairo for Development and Car Manufacturing on the Egyptian Exchange (EGX) in the framework of increasing its capital.

Cairo for Development and Car Manufacturing is 90%-owned subsidiary and the exclusive agent for the Peugeot brand in Egypt.

The company will discuss the issue at its next meeting on 25 April.

Arabia Investments posted net profits of EGP 40.2 million in 2014, compared with EGP 62.4 million in the previous year.

The firm is capitalised at EGP 534.6 million, distributed across 534.6 million shares at EGP 1 par value each.