Ahli United Bank’s Alpha Fund ended yesterday undersubscribed as it had not met the initial capital of EGP 25 million.
Sources said Alpha fund, managed by Cairo Holding for Financial Investment, met its target according to the Egyptian Financial Supervisory Authority’s instructions which conditioned that the subscription rate shall exceed half the capital and the subscription to the fund reached EGP 20 million.
The current political turmoil and the fluctuations witnessed by the Egyptian Exchange led to the under-subscription, sources added. Despite the unrest, the bank insisted to launch the fund as its license might have been withdrawn after the bank delayed its launch several times.
It is worth mentioning that Alpha Fund is AUB’s second investment fund as it had earlier launched its Tharwa (Wealth) Investment Fund that invests in fixed-income instruments. Tharwa Fund was oversubscribed nearly two times as it raised EGP 220 million, while its initial capital was EGP 100 million. Tharwa Fund was investing in short- and mid-term fixed income instruments.
