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Tunisian businessman Habib Essayeh has recorded a TND4.12-million ($1.38-million) boost to his net worth in the past eight days, as the market value of his stake rose in Tunisian automotive company, Euro-Cycles S.A, driven by a single-digit increase in the company’s shares.
Euro-Cycles is a Tunisian automotive company that specializes in the production of bicycles and cycles for export only. It manufactures beginner and midrange bikes in accordance with customer specifications.
Essayeh, the company’s CEO, owns a beneficial 33.6-percent stake in the bike maker, making him the largest shareholder in the Tunisian automaker.
Euro-Cycles shares on the Tunis Stock Exchange have increased from TND29.62 ($9.9114) on March 31 to TND31 ($10.373) as of the time of writing this report, representing a total gain of 4.7 percent for shareholders over the past eight days.
As a result of the surge in the shares of the Tunisian automotive company, the market value of Essayeh’s stake in Euro-Cycles has risen from TND88.56 million ($29.63 million) to TND92.68 million ($31.01 million) between March 31 to April 8.
This amounts to a total profit of TND4.12 million ($1.38-million) for the multimillionaire businessman since the year began.
The recent increase in Euro-Cycles’ stock price can be attributed to investor reactions to the company’s strong financial performance at the end of 2021 when its net income increased by 64 percent from TND16.33 million ($5.46 million) in 2020 to TND26.89 million ($9 million).
The sharp growth in earnings was driven by management cost-cutting strategies, which were combined with a 23-percent increase in revenue compared to figures reported at the end of 2020.
As a result of the company’s strong financial performance, the board of directors declared a dividend of TND1.67 ($0.5589) per share, which will be paid to shareholders on April 22.
