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Hadisolb's stock plunges 40% since liquidation announcement

Hadisolb's stock plunges 40% since liquidation announcement
Accumulated losses of Hadisolb reached EGP 8.5 billion on 30 June 2020
Egyptian Iron & Steel
IRON
1.63% 2.48 0.04

By: Heba El-Kordy 

Cairo – Mubasher: The stock of the Egyptian Iron and Steel (Hadisolb) lost about 40.2% since the announcement of its liquidation decision on 13 January.

At the end Wednesday’s trading session, Hadisolb’s fell by 5.51% to EGP 2.23, hitting its lowest level since the end of June 2020.

The total value of turnover amounted to EGP 8.11 million after 3.65 million shares were exchanged.

Year-to-date (YTD), the company’s stock plunged by 31.6% or EGP 1.03 after generating EGP 364.98 million in turnover, compared to a surge of 42.98% or EGP 4.97 billion in 2020.

The Chairman of the company’s parent, Metallurgical Industries Holding Co, Mohamed El-Saadawi, revealed that accumulated losses of Hadisolb reached EGP 8.5 billion on 30 June 2020.

The company’s shareholders approved a decision to liquidate its steel plant and spin off its mining operations.

The reason for liquidation is the rising losses incurred by the company and its inability to return to production.

During the first quarter (Q1) of fiscal year 2020/2021, Hadisolb  incurred net losses of EGP 274.48 million, down from EGP 367.8 million in the year-ago period.