Egypt to implement 2nd phase of g’ovt IPO in September

CAIRO – 9 June 2019: Second phase of Egypt’s initial public offerings (IPO) will take place in September as scheduled, Minister of Public Enterprises Hisham Tawfik told Enterprise.

“The government is committed holdings its first IPO under the program in September even if there’s turbulence in the market,” he added.

Public Enterprises Minister did not name the first company to be offered but according to previous statement to Oil Minister Tarek el-Molla, it would be oil and gas contractor Enppi, Enterprise stated.

Minister of Petroleum Tarek el-Molla told local media earlier that 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.

According to Enterprise, the ministry had planned to IPO four or five state companies at a rate of about one per month starting from September.

Tawfik noted that share sales by already-listed companies will still hinge on market conditions.

“Alexandria Containers & Cargo Holding and Abu Qir Fertilizers are both set to make offerings, and the timing will come down to recommendations from the investment banks quarterbacking the sales. No dates have been penciled,” the minister added.

The minister stated that he will hold a meeting with investment banks advising on the share sales during the week to decide on the next step in these share sales.

By the end of February, Egypt floated a stake of Eastern Company on EGX, and the public and private offerings on the course were completed Wednesday, March 6, with a total value of LE 1.72 billion.

In 2018, Egypt delayed listing shares of state-owned companies on the Egyptian Exchange, such as the 4.5 percent stake of Eastern Company slated for October. The government attributed the delay to volatility in the global market, noting that if the shares had been floated, they would have failed to be covered at proper valuation.

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.