Egyptian energy company Qara Energy and Investment has announced plans to increase its issued and paid-up capital from 450 million EGP to 855 million EGP, a 405 million EGP increase. This will be achieved through the issuance of 2.025 billion shares with a nominal value of 20 piasters per share and 0.5 piasters in issuance expenses per share. The move is in line with a decision made by the company's extraordinary general assembly on September 14, 2026.
The company intends to use the proceeds from the capital increase for several purposes, including strengthening its working capital across various sectors such as projects, energy, and exports, which will receive 255 million EGP. Additionally, 100 million EGP will be allocated to settle existing obligations, including tax liabilities and financing leases. The company also plans to use 18 million EGP to purchase necessary assets for its branches and 32 million EGP for marketing expenses and general and administrative expenses.
The capital increase is expected to enhance the company's creditworthiness and reflect positively on its equity. It will also increase the company's attractiveness to investors by boosting trading volumes. The company anticipates that these measures will improve its return on equity and support its working capital. Currently, the company has 2.25 billion shares outstanding, and its authorized capital is 4.25 billion EGP.
Existing shareholders of Qara Energy, including those who purchased shares until the end of the trading session on October 13, 2026, are eligible to subscribe to 0.90 shares for every original share they hold. Shareholders can also sell all or part of their subscription rights separately from the original shares. The subscription period will run from October 18, 2026, to November 10, 2026, with the possibility of closing the subscription period earlier if the entire increase is covered.
The company's major shareholders, as of June 30, 2026, include Mohamed Ayman Kamal El-Din Mohamed Abdel Khalek Qara, who holds 75% of the company's shares, equivalent to 1.6875 billion shares. Heba Mohamed Ayman Kamal El-Din Qara and Eman Mohamed Ayman Kamal El-Din Qara each hold 5% of the company's shares. The total shareholding of related parties amounts to approximately 89.0013% of the company's capital.
Qara Energy's financial position remains strong, with shareholders' equity standing at 6.663 billion EGP as of December 31, 2025, and increasing to 6.975 billion EGP as of June 30, 2026. The company's trading ratio was 1.09 times as of June 2026, compared to 1.10 times in 2025. The return on equity was 91% during the period ending June 30, 2026, compared to 34% in 2025.
The Egyptian Financial Regulatory Authority (FRA) gave its initial approval for the company's plan on October 4, 2026, allowing it to proceed with the capital increase. The FRA required the company to publish a notice in two widely circulated daily newspapers, at least one of which had to be in Arabic. The company must publish the notice within a week of its approval.
Key points
- Qara Energy to raise 405 million EGP through a capital increase
- The company will issue 2.025 billion shares with a nominal value of 20 piasters per share
- Proceeds will be used to strengthen working capital, settle obligations, and purchase assets
