EGX suspends trading in Remco shares after reports of chairman’s arrest

The Egyptian Exchange suspended trading in Remco for Touristic Villages Construction on Thursday, effective from the start of trading.

In a statement, the exchange said the suspension followed a communication sent to the company earlier on Thursday. Trading will resume once the company responds to the exchange’s inquiries, the statement said, without specifying their nature.

Several news outlets, however, linked the suspension to reports that the company’s chairman had been arrested following complaints and legal action by buyers over the company’s failure to deliver contracted residential units.

The Egyptian Exchange also announced on Thursday that it had fined the company 40,000 Egyptian pounds ($750) for repeatedly violating securities listing and delisting rules.

The suspension comes as the government steps up its review of stalled real estate projects. A member of a Ministry of Housing committee overseeing the review previously told Al Manassa that options for addressing delays include reclaiming project land or requiring struggling developers to partner with new investors or developers.

The review follows directives issued by President Abdel Fattah El-Sisi in August to form an inspection committee to review real estate projects under construction across the country.

The presidential directive aims to ensure that housing units are handed over on schedule, buyers’ contracts are honored, infrastructure is completed and developers who violate their obligations are held accountable.

The state intervention comes amid mounting consumer complaints over stalled handovers, compounding pressures that have battered the construction sector in recent years.

Building material and contracting costs climbed steeply after the Egyptian pound lost more than 60% of its value following the currency flotation in March 2024.

Founded in May 1995, Remco operates in the consumer services sector, focusing on hotels, resorts and cruise lines. It has been listed on the stock exchange since October 1998. Its paid-up capital exceeds 2 billion pounds ($37 million), and it owns several projects in Sheikh Zayed, New Cairo, Ain Sokhna and the North Coast.

Remco’s financial results showed a sharp turnaround last year, with consolidated net profits reaching 1.234 billion pounds ($23.07 million), compared with consolidated net losses of 1.399 billion pounds ($26.15 million) the previous year.

Remco’s ownership is divided between Tatyana Ayoub Adly Ayoub, who holds a 30.62% stake, and Ayoub Adly Ayoub, with 24.214%. Raafat Ramses Petro and Nabil George Amin each hold less than 0.1%, while the remaining shares are publicly traded.

Al Manassa previously documented cases in which buyers waited up to three years for their units to be handed over. Buyers said the agreed delivery deadlines had passed without construction being completed.

One project in New Cairo was delayed by about three years, even though one buyer had paid around 80% of the unit’s price. Another phase of a project in New Sheikh Zayed was running roughly three years behind its scheduled delivery date, while buyers continued making installment payments.