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19 February 2020

Egypt plans to resume IPOs of parastatals

The government expects to raise around EGP 100 billion ($6.4 billion) from the sale of stakes in more than 20 companies

The plan is part of a broader plan to revive the economy/Bloomberg

by Bloomberg

Egypt’s Minister of Public Enterprise said that the government plans to resume its programme to offer stakes in state-run firms by the end of March 2020, with Banque du Caire’s initial public offering (IPO) expected to be second in a line-up of three companies on offer.

The government launched the programme three years ago to either list anew or sell additional stakes in state companies but moved ahead with only one before the initiative stalled amid a market downturn.

Hisham Tawfik, the Public Enterprise Minister, declined to identify which companies would be offered in the coming period but said that the committee in charge of the programme pushed for the sale of Banque du Caire.

Central bank Governor Tarek Amer has said Egypt could sell a stake of up to 30 per cent in the bank, one of the country’s largest.

Another state-run firm, Heliopolis Housing, has set a deadline later this month for bidders for a company to oversee the management of the property firm in exchange for a 10 per cent stake, while another 12 per cent stake is to be offered on the stock market.

The only sale to take place under the programme so far has been an additional 4.5 per cent stake in Eastern Tobacco, the country’s monopoly cigarette maker—the deal was completed in March 2019.


RELATED STORIES: Heliopolis Housing Hisham Tawfik IPO Banque du Caire Eastern Tobacco





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