Qara Energy & Investment Projects has begun procedures to increase its issued and paid-up capital after the Financial Regulatory Authority (FRA) notified the company that it had no preliminary objection to publishing an invitation for existing shareholders to subscribe to the new shares.
The proposed capital increase amounts to EGP 405 million, raising the company’s issued and paid-up capital from EGP 450 million to EGP 855 million.
2.025 Billion New Shares#
The capital increase involves the issuance of approximately 2.025 billion new shares, with a nominal value of EGP 0.20 per share, in addition to an issuance fee of EGP 0.005 per share.
The subscription value will be paid in cash through the designated receiving bank.
The capital increase follows a resolution approved by the company’s extraordinary general assembly on September 14, 2026. Shareholders will also be allowed to trade subscription rights separately from the original shares, subject to applicable regulations.
Subscription Rights for Existing Shareholders#
Under the announced timetable, existing shareholders and investors holding or purchasing the company’s shares through the end of the trading session on October 13, 2026, will be entitled to subscribe to the capital increase at a rate of 0.90 new shares for every original share.
Shareholders may also sell all or part of their subscription rights separately from the original shares, in accordance with the applicable rules and procedures.
How Will the Capital Increase Proceeds Be Used?#
Qara Energy plans to allocate a significant portion of the proceeds to support working capital across its projects, energy, and export activities, with approximately EGP 255 million earmarked for this purpose.
The company also plans to allocate around EGP 100 million to settle certain existing obligations, while approximately EGP 18 million will be used to acquire assets, equipment, and operational requirements for its branches.
Another EGP 32 million is allocated for marketing, general and administrative expenses, as well as other operating costs.
FRA Regulatory Requirements#
The Financial Regulatory Authority required the subscription invitation to be published in two widely circulated daily newspapers, with at least one of them published in Arabic.
The authority also established regulatory requirements concerning the publication schedule and the final date for trading the original shares with subscription rights attached, ensuring that shareholders receive the necessary information before the subscription rights expire.
The move represents another step in Qara Energy’s regulatory procedures for completing the capital increase, as the company seeks to strengthen its financial position and support its operational and expansion plans.
