Governmental IPOs don’t face any obstacles: ministry

CAIRO – 20 February 2018: First Undersecretary of the Ministry of Public Enterprise Sector Ahmed Hassouna said that the governmental IPOs that are expected to be issued this year don’t face any obstacles.

Hassouna added at the Capital Market Summit that about 38 companies were issued as initial public offerings in the 1990s and were covered by a large percent, which reflects no worries about the new offerings.

Hassouna denied that the public sector business law hampers the governance of public business companies.

He asserted that the government insists on the partnership with the private sector, referring that the government’s desire is clearly reflected in the privatization process, which the government intends to apply through the new proposals for a large number of companies contributed by the private sector.

Hassouna called on private investment banks to practice governance in their financial operations, as well as Insurance Holding Company in managing its financial portfolio.

The Initial Public Offerings program is conducted under the supervision of the Ministry of Investments.

It covers a period of three to five years, aiming at offering partial stakes in some state-owned companies on the Stock Exchange. It will serve as a main tool to attract local and foreign capital flows to Egypt.

The Egyptian Association for Finance and Investment Studies (EGFIN) organizes the Annual Capital Markets Summit on February 20, 2018 under the theme “The role of reforms in restoring growth and the vision of the capital market 2030”.

The summit addresses the government’s vision of the role of the Egyptian Exchange (EGX) in the finance system and the legislative framework to support the role of the capital market and increase its volume and provide liquidity suitable for the flow of capital to support achieving the desired economic growth.

It discusses the readiness of a number of private companies to put on the stock exchange as well as a presentation of one of the success stories in the market and how the capital market contributed to increasing the size of the company and supporting its continuity.