Offering of Eastern Co. on EGX to occur after Eid Al-Fitr: Minister

CAIRO – 12 June 2018: Initial Public offering (IPO) of Eastern Company will take place on the Egyptian Exchange (EGX) after the holiday of Eid Al-Fitr, according to Minister of Public Enterprises Khaled Badawi.

Badawi expected that Alexandria Container and Cargo Handling Co (ALCN) will be the second public company to be listed on EGX.

The Egyptian Exchange (EGX) decided that Sunday and Monday, June 17 and 18, will be an official holiday on the occasion of Eid Al-Fitr.

The market will resume trading on Tuesday June 19, according to an official statement issued on Monday.

In March, The extraordinary general assembly of Chemical Industries Holding Company approved issuing 4 percent of its stake in Eastern Tobacco on EGX.

Minister of Public Enterprises Badawi affirmed earlier that this percentage comes as a part of the state’s IPO program to expand the ownership base, provide financing for companies to expand their projects and the restructure process, revitalize the EGX, attract new investments, and achieve the highest degree of governance and transparency in the management of these companies.

Badawi added that the return from the offering of the Eastern Tobacco Company’s shares will be directed to restructuring and developing the subsidiaries of the Holding Company.

In April, Chemical Industries Holding Company announced that it seeks to increase the percentage of the free-trading shares of its subsidiary, Eastern Company, by 4 percent, within the framework of the state’s initial public offering (IPO) program.

Chemical Industries Chief Executive Officer Emad el-Din Mostafa expected that the offering of the shares would take place during the current year after finalizing the procedures of the stock split by 1:3 ratio to be valued at LE 5 instead of LE 15.

Mostafa said that the yield of the offering will be used to finance Eastern Company’s investment plan and other subsidiaries, including El-Nasr and El-Delta companies, to add other production lines.

Chemical Industries hold a 55-percent stake in Eastern Co, and the remaining 45 percent stake is distributed over retail and institutional shareholders.

Eastern Co is a public company, listed on the Egyptian Exchange (EGX) since September 1995. It operates within the food, beverage and tobacco sector focusing on tobacco. It was established in July 1920.

As per Alexandria Container and Cargo Handling Co, it will offer 15 percent of its shares on EGX.

It is a public company, listed on Egyptian Exchange since August 1995, operating within the transportation sector focusing on marine ports & services; the company added the real estate investment to its activities in July 2017, with five subsidiaries operating across Egypt.

In 2016, Egypt launched the government’s IPO program to offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

The state’s IPO program comes in light of the economic reform program adopted by Egypt and 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 (EGX). It will serve as a main tool to attract local and foreign capital flows to Egypt.

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