File - EGX
CAIRO – 2 August 2018: The extraordinary general assembly of the Holding Company for Construction and Development approved the decision of the board of directors to float 32.25 percent of Heliopolis Housing and Development Company’s shares as part of the state’s program to float shares of state-owned companies on the Egyptian Stock Exchange (EGX).
The extraordinary and ordinary general assemblies of the Holding Company were headed by Minister of Public Business Sector, Hisham Tawfik, in the presence of the chairman and members of the board of directors and general assembly, as well as representatives of the Central Auditing Organization.
Tawfik said the implementation of the IPO program will not affect the rights of workers, and the development is expected to be reflected in the performance of companies after the proposal, in light of the private sector's contribution in the management to stabilize and improve the situation of workers.
He also pointed to the importance of partnership with the private sector to benefit from the technical, administrative and marketing expertise, positively affecting the high return on investment in subsidiaries.
In 2016, Egypt launched the government’s IPO program to offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.
The state’s IPO program comes in light of the economic reform program adopted by Egypt and 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 (EGX). It will serve as a main tool to attract local and foreign capital flows to Egypt.
It also aims to increase funding to Egyptian companies and maximize the benefit from state assets.
On another note, the general assembly of the Holding Company for Construction and Development approved the draft consolidated budget of the company and its subsidiaries for 2018/2019 with target revenues of LE 19.2 billion.
The statement added that the target revenues rose 63 percent of the actual revenues of fiscal year 2016/2017.
The company also targets a net profit of LE 1.4 billion, with an increase of 25 percent, compared to 2016/2017.
The ordinary general assembly also approved the restructuring of the Holding Company's board of directors as of July 14, 2018.
The minister stressed the need to focus on training employees as they are the real capital of the company, reiterating that investing in humans is not less important than investing in equipment.
The Holding Company for Construction and Development is one of the Ministry of Public Business Sector's companies working in construction industry.
The company owns 20 companies, categorized as follows: nine contracting companies, one foundation company, one company for designs and engineering consultations, three housing companies, two electric companies, one company for agricultural projects management, and three companies that returned to the state upon judicial rulings: Omar Effendi, Al-Arabia Foreign Trade Co., United Company For Trade.
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