Egypt's SODIC hits 5-year high, doubles profits in H1/2014

Egypt's Six of October Development and Investment (SODIC), the country's third-largest real estate developer, saw a five-year high in its share price on Thursday, reaching LE44 after seeing significant net profits in the first half (H1) of 2014.
According to a statement released by the company on Thursday, SODIC's net profit in H1/2014 (LE91 million) has almost doubled from the same period of last year as the property developer has witnessed strong and healthy operations during the first six months of the year.

"The share price has gone up as investors are tending to buy since their sentiment is boosted by SODIC's plan to increase its capital by LE1 billion," Eissa Fathy, vice head of the securities division at Cairo Chamber of Commerce, told Ahram Online.

The company said in May that "the capital increase will be divided over 250 million shares at a value of LE4 per share. Existing shareholders will have the right to either subscribe to the capital increase or sell their subscription right in the market via tradable rights."

SODIC's flourishing operations were led by the delivery of 223 housing units worth LE644 million in H1/2014, compared to 212 units in H1/2013 that brought LE426 million.

Egypt's real estate industry was thrown into turmoil after a popular uprising ousted president Hosni Mubarak in 2011, causing demand for high-end property to fall.