FILE - Finance Minister Amr el-Garhy FILE - Finance Minister Amr el-Garhy

Egypt selects 23 companies for 1st phase of state IPO program

Sun, Mar. 18, 2018
CAIRO – 18 March 2018: Egypt selected 23 state companies for the first phase of the state IPO program, with total shares value of LE 80 billion, a statement from the Finance Ministry said Sunday.

Market value of the soon-to-be-listed companies stands at LE 430 billion, the statement said, adding that the government intends to float about 15-30 percent of the companies in the Egyptian Exchange (EGX).

The program is expected to be implemented in a period that ranges between 24-30 months.

This comes as part of the state program to float some state-owned companies on the Egyptian Exchange under a five-year program announced in 2016 to attract investment and invigorate the stock market.

It also aims to increase funding to Egyptian companies and maximizing benefit from state assets.

The first phase of the program will include five companies in the petroleum sector, including Enppi, Assiut Oil Refining Co (ASORC) and Alexandria Mineral Oils Company (AMOC), six companies in the petrochemicals sector, including Sidi Kerir Petrochemicals Co and the Egyptian Ethylene And Derivatives Company and three companies in the logistics sector.

As for financial services, the listing will include the Housing and Development bank, Bank of Alexandria, Banque Du Caire, e-finance and Misr Insurance companies, according to the statement.

The real estate sector will have two companies listed, while the customer services and Industry sectors will each have one company listed.

The state IPO program comes in light of the economic reform program adopted by Egypt. President Abdel Fatah al-Sisi has directed the government to quickly implement the IPO program and make it a success.

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