Egypt sells 9.5% stake in Telecom Egypt in a $121M deal

Egypt’s Ministry of Finance sells a 9.5 percent stake in state-owned telecom operator Telecom Egypt, raising more than LE 3.7 billion, which accounts for $121 million.

The volume of requests received in the first tranche reached more than 504 million shares, which is around 3.11 times more than the total shares offered for that tranche. The Egyptian government sold more than 162 million shares, at a price of EGP 23.1 per share. The ministry said that it will offer an additional 0.5% for company employees to buy.

This offering comes within Egypt’s IPO program to expand the ownership base of state-owned companies, maximizing the contribution of the private sector in the economy.

Earlier this week, Moody’s placed the Government of Egypt's B3 long term foreign-currency and local-currency issuer ratings on review for downgrade. Before this rating action, Egypt's ratings were B3 and the outlook was stable.

The Telecom Egypt transaction signals Egypt’s seriousness about conforming to the economic reform program and stressing the government’s willingness to work towards supporting economic growth and stability in the country.