Egypt to announce IPOs timetable next week



Mon, 26 Feb 2018 - 12:29 GMT


Mon, 26 Feb 2018 - 12:29 GMT

FILE - Deputy Finance Minister Ahmed Kojak

FILE - Deputy Finance Minister Ahmed Kojak

CAIRO – 26 February 2018: Deputy Minister of Finance for Financial Policies Ahmed Kojak stated that the government targets to increase market capitalization from 20-21 percent of gross domestic product to 50-60 percent by issuing governmental companies in the Egyptian Exchange (EGX).

Kojak added that the government will publish a timetable of the governmental IPOs in the Egyptian Exchange next week, according to his statement at the American Trade Chamber (AmCham).

In 2016, the government launched an IPO program that offers shares in several state-owned companies over the next three to five years in fields such as petroleum, services, chemicals and real estate to help boost state finances.

The Initial Public Offerings program is conducted under the supervision of the Ministry of Investment.

It covers a period of three to five years, aiming to offer partial stakes in some state-owned companies on the Stock Exchange. It will serve as a main tool to attract local and foreign capital flows to Egypt.

Chairman of the Egyptian Exchange (EGX) Mohamed Farid said in 2017 that the initial public offering (IPOs) of state-owned companies will increase attractiveness of the stock market and hike trading volumes.

“These IPOs will also boost the capabilities of these companies to commit to government regulations, and also allow the government to monitor their performance," Farid said.

In November 2017, Governor of the Central Bank of Egypt (CBE) Tarek Amer said that IPOs of banks will be offered in the second half of 2018.

Also, listing shares of the Engineering Company for the Petroleum and Process Industries (ENPPI) in the EGX will not take place in the first quarter of 2018, Executive Director of NI Capital Ashraf Ghazaly said.

On February 20, First Undersecretary of the Ministry of Public Enterprise Sector Ahmed Hassouna said that the governmental IPOs that are expected to be issued this year don’t face any obstacles.



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