The alexandria mineral oils company (AMOC): A strategic assessment of AMOC's IPO

The alexandria mineral oils company (AMOC): A strategic assessment of AMOC's IPO

Department

Management Department

Abstract

This case deals with a critical question about the underlying motives for Initial Public Offerings (IPOs), using the events surrounding the IPO of the Alexandria Mineral and Oils Company (AMOC) in Egypt. AMOC, a government-owned company that was seeking partial privatization, was offered to the public at LE 45per share, and in no more than one week of trading, the share price skyrocketed to LE 85, almost doubling the company's price/earnings (P/E) ratio. This was a matter of major concern to the company's management, since the high P/E ratio detracted from AMOC's attractiveness to a strategic investor. The case gives an overview of AMOC's main business activities and of the local and international petroleum industry and highlights the process of an initial public offering as well as the parties involved. © 2011, IGI Global.

Publication Date

12-1-2011

Document Type

Book Chapter

Book Title

Cases on Business and Management in the MENA Region: New Trends and Opportunities

Editors

El-Khazindar Business Research and Case Center

ISBN

9781609605834

Publisher

IGI Global

City

Hershey, PA

First Page

89

Last Page

97

The alexandria mineral oils company (AMOC): A strategic assessment of AMOC's IPO
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