Egyptian Ezz Steel revealed the reasons behind its decision to seek to delist its shares from the Egyptian Stock Exchange for three reasons, including the increase in risks in light of the fluctuations witnessed by the industry resulting from the spread of protectionist measures in Europe.

The company added in a letter sent to the Egyptian Stock Exchange that it seeks to avoid the repercussions of stock price fluctuations, while the third reason behind the company’s decision to delist from the Egyptian Stock Exchange is to relieve pressure on investors amid a risky future outlook resulting from the increase in global steel production surpluses.

The company said that it intends to finance the process of delisting its shares from the Egyptian Stock Exchange with external financing with a maximum limit of $300 million, and the Egyptian Financial Supervisory Authority approved the publication of Ezz Steel’s disclosure report and the completion of procedures related to inviting the company’s extraordinary general assembly to consider the voluntary delisting decision.

Ezz Steel is among the top 20 companies listed on the Egyptian Stock Exchange in terms of market value, which is close to EGP 60 billion. It is the second largest company in terms of relative weight in the basic resources sector, as the company has a production capacity of approximately 7 million tons of rebar and flat steel.