“We can not really speak of a recovery. The Tunis Stock Exchange (TSE) still suffers mainly from the political uncertainty prevailing in the country,” Fadhel Abdelkefi, President of the Tunis Stock Exchange told Africanmanager, on the sidelines of a ceremony held Thursday, March 7, 2013, at the seat of the Exchange to announce the start of trading of Land’Or.
He added that it is clear that the formation of the government and the establishment of a clear roadmap represent a very strong signal to local and foreign investors.
“Recovery around the world is implicitly linked to the psychology and general situation of the country,” said Fadhel Abdelkefi stressing, however, that despite these difficult economic times, the stock market continues to resist and the index keeps acceptable levels.
“Though, trading volumes are, certainly, low in average, we have not lost all the volumes that have been recorded,” he said.
Land’Or: 21,000 new shareholders!
The President of the Tunis Stock Exchange noted, moreover, that the year 2013 was marked by IPOs, indicating that several applications are currently submitted to the Financial Market Council (CMF) for approval, which will allow for a real marketing of businesses, according to him. Thus, the Tunis Stock Exchange announced today that the number of officially listed companies has now reached 60 with the listing of “Land’Or” on the alternative market.
Expressed demand on the IPO of the company has reached approximately 14 times the amount offered, which was considered by Fadhel Abdelkefi as a good sign to encourage other companies to go public.
Indeed, the operation has attracted a total of 21,000 new shareholders, said the Board Chairman of the TSE, Fadhel Abdelkefi. The amount raised by the market stood at 11 million dinars.
The IPO of Land’Or follows a capital increase carried out by issuing 1,456,000 shares distributed at a price of 7.500 per share of 1 dinar, through a public offering with firm price on 582,000 shares and a guaranteed investment of 874,000 shares.
Two next IPOs
Mohammed Bchiou, Director General of the Tunis Stock Exchange welcomed, in turn, the success of the listing of Land’Or: “with a demand 14 times higher than supply, and the mobilization of 21,000 new shareholders, Land’Or has done a good work,” he said.
About the state of the stock market in 2013, he said that this year looks good. “There have been good signs during this year.” From the first week of March, an increase of 4.6 MTD was recorded in trading volume on the stock market, he said.
Mohammed Bchiou also indicated that the Tunisian market has already absorbed the impact of the political turmoil caused by the attack on the U.S. embassy in Tunis and the assassination of Chokri Belaid.
According to him, the Tunis Stock Exchange recorded the largest number of new decisions of admission to the stock market. In December 2012, the Board of Directors of Stock Exchange, met on five occasions, to decide on the listing of five new companies (Land’Or, New Body Line, Euro cycle, One Tech and Bitaka).
Sources of Africanmanager said two new companies will be listed in the main market of the stock exchange. They are Hannibal Lease and Cellcom. The Board of Directors of the stock exchange should meet next March 14 to approve the admission of Hannibal Lease while the meeting on Cellcom is scheduled for the end of this month.
Ten IPOs in 2013
Raouf Boudabous, representative of the Tunis Stock Exchange said, on his part, that the political situation has somewhat altered the movement of the stock market as well as the evolution of both the Tunindex and trading, noting, however, that “we can speak of a certain recovery, as trading volumes have currently exceeded 5 million dinars.”
He also indicated that the IPO of Land’Or was a great success despite a certain wait-and-see attitude noted among investors. He added that four operations are in the process of receiving approval from the Financial Market Council, including Bitaka, New Body Line and Euro Cycle.
In total, the number of IPOs is estimated at a dozen companies in 2012, according to Raouf Boudabous.