Egypt to float 5-6 companies on EGX: Prime minister

CAIRO – 25 September 2019: Egypt will float 5-6 public companies on the Egyptian Exchange (EGX) during the coming period, Prime Minister MostafaMadbouli said Wednesday.

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.

Madbouli stated some economic figures during his visit to Beni Souif Governorate to inspect two projects to develop slums.“Egypt achieved an economic growth rate of 5.6 percent during 2018/2019, hitting the highest level in 10 years,” he said, adding that inflation rate declined to 14.4 percent.

The prime minister also statedthat unemployment rate dipped to 7.5 percent, referring that this rate is the lowest in 15 years, noting that his government is aware of all bureaucratic procedures, and is working on solving problems that might face the investors in Egypt.

“Around 4 million job opportunities were provided over the past period,” he revealed.
As per Education, Madbouli noted that a technological university willbe established in every governorate within the framework of focusing on technological universities.He further clarified that 57 treatment plants will be completed by the end of 2020, pointing out that the axis of Adly Mansour costs LE1.2 billion and will be opened soon.

“Seven axes have been executing during current fiscal year,” he stated.

As per his meeting with parliament members in BeniSeuif, the prime minister discussed several files including sanitation projects for villages and raisingthe efficiency of roads.

Mabouliclarified thata plan has been set topaveroads over a period of 3 years with an investment of LE 35 billion to raise the efficiency of roads and the development of internal roads for villages, cities and governorates.