Egypt’s Prime Minister Sherif Ismail talks during an interview with Reuters at his office in Cairo September 22, 2014. REUTERS/Amr Abdallah Dalsh
CAIRO – 7 April 2018: Prime Minister Sherif Ismail said that the government’s IPO program aims to invigorate the stock market, attract more investments and provide financing to the companies so that they can expand, an official statement said Sunday.
This came during Ismail’s meeting with ministers of petroleum and finance, along with oil companies officials, to follow up on the plan to offer shares in some of the state-owned companies on the Egyptian Exchange.
Ismail said the government program does not aim to lay off workers but seeks to support the companies' capabilities to grow and improve.
During the meeting, Petroleum Minister Tarek el-Molla reviewed the status of oil companies to decide on the best companies that will be floated in the coming period, saying that the oil sector is one of the most important promising industries in the country.
Finance Minister Amr el-Garhy said that the IPO program helps in putting Egypt’s economy on the right track. He said that the total value of shares that will be put up for sale on the stock exchange amounts to LE 80 billion.
Egypt selected 23 state companies for the first phase of the state IPO program. A Finance Ministry statement said last month that market value of the soon-to-be-listed companies stands at LE 430 billion, adding that the government intends to float about 15-30 percent of the companies on the Egyptian Exchange (EGX).
This comes as part of the state program to float some state-owned companies on the EGX under a five-year program announced in 2016 to attract investment and invigorate the stock market.
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.