Egypt's IPO Program generates $5.6B through selling stakes in 14 companies

Cairo – December 21, 2023: Egypt's initial public offering (IPO) program has yielded a remarkable $5.6 billion, with the sale of complete or partial shares in 14 state-owned companies, as disclosed by Prime Minister Mostafa Madbouly.

In further collaboration with the Egyptian government, the International Finance Corporation (IFC) is conducting preliminary studies for the potential inclusion of 50 additional state-owned companies, Madbouly added.

The IFC has already prepared a study for the next phase, which will prioritize four sectors: management and operation of state-owned airports, telecommunications, banks, and insurance, according to the prime minister's statement.

As part of Egypt's IPO program, the Arab Company for Tourism and Hotels Investments (ICON), a subsidiary of Talaat Mostafa Holding Group, recently completed the acquisition of seven state-owned hotels located in Cairo, Alexandria, and Aswan.

Egypt’s IPO program is a list of 35 state-owned companies that was offered in 2023 to strategic investors, the public offering on the Egyptian Stock Exchange, or both, to provide foreign currency, within the framework of a state-owned policy document.

The IPO program is one of state plans to solve the economic crisis and the shortage of hard currency by attracting more investors.

In August, the Cabinet's Information and Decision Support Center (IDSC) reported the Egyptian government's objective of raising $5 billion by offering shares of selected state-owned companies to strategic investors from October 2023 to the end of June 2024.

Furthermore, in July, Prime Minister Madbouly revealed Egypt's ambitious target of reaching $191 billion in revenues by 2026, a significant increase from the current figure of $70 billion.