Egypt to float shares in 4-6 companies during 2018

CAIRO – 19 March 2018: Egypt will offer shares in four to six companies in 2018, seeking to earn between LE 12 to LE 15 billion ($680 million -$850 million), Finance Minister Amr el Garhy told Reuters on Monday.

The country plans to float shares in the state owned oil company – Engineering for Petroleum and Process Industries (Enppi) – in September, Garhy said.

The Ministry of Finance announced Sunday that the Egyptian government elected 23 state companies for the first phase of the state IPO program, with a total shares value amounting to LE 80 billion.

Market value of the soon-to-be-listed companies stands at LE 430 billion, the statement said, adding that the government intends to float about 15-30 percent of the companies in the Egyptian Exchange (EGX).

The program is expected to be implemented in a period that ranges between 24-30 months.

This comes as part of the state's program to float some state-owned companies in the Egyptian Exchange under a five-year program announced in 2016 to attract investment and invigorate the stock market.

It also aims to increase funding to Egyptian companies and maximize the benefit from state assets.

The first phase of the program will include five companies in the petroleum sector, including Enppi, Assiut Oil Refining Co (ASORC) and Alexandria Mineral Oils Company (AMOC), in addition to six companies in the petrochemicals sector, including Sidi Kerir Petrochemicals Co, the Egyptian Ethylene And Derivatives Company, and three companies in the logistics sector.

As for financial services, the listing will include the Housing and Development Bank, Bank of Alexandria, Banque Du Caire, e-finance and Misr Insurance companies, according to the statement.

The real estate sector will have two companies listed, while the customer services and industry sectors will each have one company listed.

The state IPO program comes in light of the economic reform program adopted by Egypt. President Abdel Fatah al-Sisi has directed the government to quickly implement the IPO program and ensure its success.

The Initial Public Offerings (IPO) program is conducted under the supervision of the Ministry of Investment.

It covers a period of three to five years, aiming to offer 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.