Egypt’s Financial Regulatory Authority (FRA) has officially approved Sidi Kerir Petrochemicals Company’s (Sidpec) capital increase through a free share distribution, marking a key step in the firm’s growth strategy for 2025.
In a statement issued Thursday morning, the FRA confirmed that it had endorsed Sidpec’s disclosure report, which outlines the increase of the company’s issued and paid-up capital from EGP 1.81 billion to EGP 2.26 billion.
The capital will be raised by EGP 453.6 million through the allocation of one free share for every four shares held, each with a nominal value of EGP 2.
The report clarified that this increase is being financed from retained earnings generated during the previous fiscal year. These earnings were formally approved by the company’s general assembly in April, which also authorized the issuance of the free shares to shareholders.
In addition to the capital hike, Sidpec’s general assembly has approved a cash dividend payout of EGP 1 per share, to be disbursed in two separate installments.
The dual strategy of free share issuance and cash dividends underscores the company’s robust financial performance and its commitment to delivering value to shareholders.
The petrochemical firm has reported a net profit of EGP 2.53 billion for the fiscal year 2024, slightly up from EGP 2.45 billion the previous year. Total sales also rose to EGP 14.15 billion in 2024, compared to EGP 13.19 billion in 2023.
Market analysts have taken a positive view of Sidpec’s trajectory. Investment firm Naeem recently projected that the company’s stock could appreciate by as much as 32.76% by the end of 2025, issuing a strong buy recommendation.
As Sidpec continues to reinforce its financial position, the company’s latest moves signal confidence in Egypt’s petrochemical sector and a clear ambition to maintain growth momentum.
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