Telecom Egypt might add additional 10% stake on Egyptian Exchange

The Egyptian government is expected to sell an additional 10 percent stake in state-run Telecom Egypt through a share sale this month, aiming to raise cash and reassure investors, according to anonymous sources familiar with the matter.

As early as this week, the company will begin a book-building process for institutional investors, with shares expected to be listed on the Egyptian stock exchange.

The government has set the indicative price for the offering at LE 22.25 per share, which represents an offering size of approximately LE 3.8 billion ($241 million). This figure is discounted at 3.8% to Telecom Egypt's last close of LE 23.14 per share.

The sale of a portion of Telecom Egypt is part of the government's plan to promote private sector growth while attracting international investors by exiting certain sectors. The company also holds a 45 percent stake in Vodafone Egypt.