By: Heba El-Kordy

Cairo – Mubasher: Ibnsina Pharma has surged 41% during its first 10 trading sessions on the Egyptian Exchange (EGX) since 12 December 2017 to EGP 8.32, beating estimates.

Given Ibnsina Pharma has set the final price of its initial public offering (IPO) on the EGX at EGP 5.8 per share.

Ibnsina Pharma’s stock exceeded all the target price evaluations that ranged between EGP 7.2 and EGP 7.5, said pharmaceutical analyst at Mubasher Research Ahmed Abdel Nabi. 

The stock soared 14.7% during the first minutes of trade on the EGX.

Earlier this month, the EGX stated that Ibn Sina Pharma’s IPO was implemented with a liquidity of EGP 1.5 billion.

The stock benefited from the IPO amid the introduction of Egypt’s new health insurance law, which will positively impact firms working in the medical field, including hospitals and pharmaceutical distributors, Abdel Nabi highlighted.

Last week, the Egyptian Parliament approved a proposed bill by the government regarding the new integrated health insurance law.

Ibnsina’s position among the pharmaceutical sector’s firms on the EGX, as compared with the sector’s other firms, has helped the stock to be active since it was listed, he continued.

Furthermore, the stock hit the highest record last Thursday, closing at EGP 8.75.

MubasherTrade has set its target price for Ibnsina Pharma’s stock at a range between EGP 4.71 to EGP 7.21, he indicated.

Trading on the stock stood at EGP 785.4 million through 112 million shares since listing on the EGX.

Ibnsina is forecast to start seeing a short-term correction wave after surpassing all evaluations, the analyst said.

By 2:29 pm Cairo time, Ibnsina’s stock fell 3.48% to EGP 8.05.

Translated by: Mai Ezz El-Din