Egypt to establish Fund of assets for IPO worth $4B

CAIRO - 7 June 2022: CEO of the Sovereign Fund of Egypt,  Ayman Soliman, said Tuesday that work is currently underway to establish a fund of assets worth $4 billion, with the aim of accelerating subscriptions and fair evaluation of companies.

 

He added in an interview with Al Arabiya, that a list of some assets that will be included in this portfolio to be presented to investors has been drawn up, and we [the government] have surveyed the appetites of several partners.

 

While he declined to reveal the names of those companies, he said: "We have a clear vision of the value of the portfolio, the assets and the targeted shares, and we are in dialogue with the share owners about the legal form of transferring the portfolio to the fund so that we can then launch this unique investment product."

 

The CEO of the Sovereign Fund of Egypt revealed that the value of the portfolio ranges between $3 billion and $4 billion, with the aim of raising it to more than $5 billion or $6 billion.

 

Soliman indicated that the fund comes within the government's exit program, but that the offerings will not include companies affiliated with the army, such as "Al-Watania" and "Safi".

 

On the other hand, he stated that a memorandum of understanding (MoU) will be signed with the Saudi Public Investment Fund soon, to pump investments of about $10 billion into joint projects, and that the portfolio is diversified between government and private companies, noting that the Saudi Fund has a high appetite to enter into large investments within its pledge to pump $10 billion in Egypt.

 

It is noteworthy that the Saudi Cabinet approved an agreement on the investment of the Saudi Public Investment Fund in Egypt.

 

On March 30, the Egyptian Prime Minister, Mostafa Madbouli, witnessed the signing ceremony of an agreement between the Egyptian government and the government of the Kingdom of Saudi Arabia, regarding investment in Egypt.