Egypt’s Sovereign Fund reportedly preparing MIDAR for 2024 IPO

Mostakbal City’s master developer, MIDAR for Investment & Urban Development - formerly Mostakbal for Urban Development Company - is reportedly being prepared by the Sovereign Fund of Egypt (TSFE) for an IPO on the Egyptian Exchange set for H1 2024, according to local media, citing a source close to the matter.

The company was added to TSFE’s Pre-IPO fund earlier this year. According to sources, preparations for the potential IPO have begun but did not disclose further details.

The Pre-IPO Fund, created by the Sovereign Fund of Egypt in September 2022, works to facilitate the offerings of government companies to strategic investors including sovereign wealth funds ahead of public offerings.

Regional media outlets previously reported that the TSFE was looking to offer a 25-30 percent stake in the real estate company to a strategic investor.

Majority shareholders Banque Misr and the National Investment Bank, who have a combined stake of around 75 percent, intend to fully exit the company, local media wrote. The remaining shareholders are Banque Misr’s investment arm Misr Capital which owns 5.65 percent, the National Bank of Egypt with 8.9 percent, and Arab Contractors with 10.94 percent.

Regarding Egypt’s privatization strategy, multiple media outlets have cited sources as stating that the Administrative Capital for Urban Development (ACUD) could be going public on the Egyptian Exchange as soon as the first half of 2024, as well as the potential sales of an additional 10-15 percent stake in Telecom Egypt to investors which is expected to close by the end of the year.

Eight companies have been included in the Pre-IPO Fund from the government’s privatization program so far, according to TSFE head, Ayman Soliman, who was quoted by media in March earlier this year. At the time, Soliman did not disclose which companies would be added to fund, however, local media have reported include Misr Technology Services, Egyptian Drilling Company, Egyptian Linear Alkyl Benzene (Elab), Banque du Caire, Misr Life Ins, and Salhia Investment and Development Company as being part of the list.