Cairo - Mubasher: Egyptian Transport and Commercial Services Co (Egytrans) on Monday announced that its share buyback offer of EGP 7.2 per share was 1.3 times oversubscribed. 

Earlier in October, the company’s board decided to repurchase 2.2 million at EGP 7.2 per share, resulting in a total value of EGP 15.8 million. 

The board said that the company’s share price of EGP 6.22 was “undervalued” and did “not reflect the strong performance of the company.” 

The buyback decision boiled down to the board’s confidence in the company’s well-established financial position given its proven strong performance in the Egyptian financial market. 

Egytrans’ share buyback received significant response and was oversubscribed at EGP 15.93 million on the OPR market opened by the Egyptian Exchange (EGX) at the end of the issue period, 10 October,” Egytrans said in a bourse filing on Monday. 

It further revealed that shareholders had tendered over 2.8 million shares on the EGX against the 2.2 million shares the company wanted to buyback. 

The price of EGP 6.22 did not reflect the firm’s competitive position in the logistics and transportation industry and its future potential,” said Egytrans chairwoman Abir Leheta. 

In August, Egyytrans reported a 60% year-on-year decline in consolidated profits for the first half of 2018 to EGP 24.9 million versus EGP 61.5 million.