Cairo – Mubasher: NBK Capital, the research arm of National Bank of Kuwait, maintained its fair value estimate for Egypt’s leading car assembler and distributor GB Auto at EGP 6.6p per share, with a ‘Buy’ recommendation, upon trading the company’s secondary shares Monday.

“We expect this will have a positive impact on the trading volumes for GB Auto, as the number of shares has increased from 128.9 million to 1.1 billion post the completion of the rights issue,” said the research arm of National Bank of Kuwait.

GB Auto’s rights issue, which was 99.9% covered, was aimed to raise issued capital by EGP 958.7 million to EGP 1.1 billion from EGP 135.34 million.

According to the company, the capital increase will be financed by EGP 473.2 million in cash, in addition to EGP 485.45 million from accounts payable.