Karachi May 29 2024: Faysal Bank saw a nearly 15 percent increase over two days on the Pakistan Stock Exchange after its parent company, Ithmaar Bank, successfully sold a 41 percent equity stake in Faisal Islamic Bank of Egypt at a 42 percent premium to the market price.
An undisclosed buyer acquired a 5.76% stake in Faisal Islamic Bank of Egypt (CASE ) from Ithmaar Holding B.S.C. (BAX) for $34.8 million on May 26, 2024, involving 35.3 million shares.
“The deal was priced at 1x Price to Book, approximately 40% above its trailing Price to Book of 0.7x,” according to JS Global Capital.
JS Global research added, “Following this transaction, there is speculation of a similar deal occurring in Pakistan, as Ithmaar Bank owns 48 percent of Faysal Bank (FABL).”
With the 15 percent appreciation, Faysal Bank is now trading at a trailing Price to Book of 0.75x, based on a book value of PKR 59.4 per share.
