Egypt to collect proceeds of LE 100B from state’s IPO program

CAIRO – 24 April 2019: Egypt targets to collect proceeds of LE 100 billion from the initial public offering (IPO) program, Assistant Minister of Finance for Capital Market Affairs Khalid Abel Rahman said.

He added that the IPO program is expected to raise the market capitalization by LE 450 billion and to be implemented within 23 months from January 2019.

"The Egyptian government understands the importance of the stock exchanges in the development process," said Abdel Rahman during his speech at the 10th annual conference of the Arab Stock Exchanges Federation, noting that the program aims to support the market and increase the volume of trading and liquidity.

He also referred to the cooperation between the Egyptian Exchange (EGX) and Finance Ministry to put new trading system for sovereign debt instruments with fixed yields, adding that licenses should be granted to non-bank financial institutions to trade in sovereign bonds on the stock exchange, especially since the number of players in the primary bond market is estimated at 16 out of 30 banks.

The assistant minister of finance for capital market affairs said that the number of players in the bond market should increase and trading on the stock exchange should start, which will enhance transparency, thus increasing liquidity attraction to the market.
During December, the Financial Regulatory Authority (FRA) issued a decree allowing companies to offer and issue short-term bonds.

According to the decree, these companies included joint stock companies and shareholding companies, as well as companies authorized to engage in a non-bank financial activity after getting the authority's approval, with banks subject to the Central Bank's approval.