Egypt to float stake of Enppi on EGX in H12019

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Tue, 05 Mar 2019 - 01:10 GMT

BY

Tue, 05 Mar 2019 - 01:10 GMT

FILE - Employees in the EGX following performance of the trading session on December 12, 2017

FILE - Employees in the EGX following performance of the trading session on December 12, 2017

CAIRO – 5 March 2019: Egypt is expected to float a stake of Oil Company Engineering for Petroleum and Process Industries (ENPPI) on the Egyptian Exchange (EGX) in the first half of 2019, or before the Holy month of Ramadan, Minister of Petroleum Tarek el-Molla told local media Monday.

This comes as part of Egypt’s initial public offering programto offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

Enppi’s stake is expected to hit 24 percent, as former Minister of Public Enterprises KhaledBadawi said that Enppi will be floated with 15-30 percent.

In 2016, Egypt announced the launch of the government’s IPO program offering shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

As part of the economic reform program, the government targets offering 15-30 percent of stakes in state-owned companies on the stock exchange (EGX) to increase funding to Egyptian companies, maximize the benefit from state assets, and attract local and foreign capital flows to Egypt.

Enppi comes in at the first phase of the IPOs’ program to float some state-owned companies in the Egyptian Exchange under a five-year program announced in 2016 for the purpose of attracting investment and invigorating the stock market.

Besides Ennpi, the first phase of the program comprises another four companies in the petroleum sector, including Assiut Oil Refining Co (ASORC) and Alexandria Mineral Oils Company (AMOC), in addition to six companies in the petrochemicals sector, including SidiKerir Petrochemicals Co, and the Egyptian Ethylene And Derivatives Company, as well as three companies in the logistics sector.

Enppi was established in 1978, is specialized in oil and gas industry and is a provider of fully integrated engineering, procurement, construction supervision and project management services for the petroleum, petrochemicals, power and other industries.

By the end of February, Egypt floated a stake of Eastern Company on EGX, and the private offering of the cigarette company was oversubscribed by 1.8 times at a price of LE 17 which exceeds the company’s share price on Thursday, Feb. 28, by 3 percent.The public offering started Sunday, March 3, and will end on Tuesday, March 5, 2019.

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