Egypt to decide offering two military companies on EGX during Q1 of 2020

CAIRO – 21 December 2020: The decision to offer two of the military companies on the Egyptian Exchange (EGX) is expected to be resolved in the first quarter of 2021, after Egypt's sovereign fund determines the shares to be sold in the two companies, according to Minister of Planning and Economic Development Hala el-Said.

According to the minister, the two companies are National Petroleum Company (NPC), and the National Co. for producing natural water (Safi).

El-Said added, in a TV interview, that the plan could include allowing private sector investors to own 100 percent of the shares of the two companies, stressing that the listing of the companies affiliated to the army on the stock exchange would make them subject to all the registration and disclosure rules announced in the capital market, including those related to their financial statements and other information.

She refused to disclose the identity of the other three companies affiliated to the army, which the Egyptian Sovereign Fund announced its intention to offer in the coming period.

Egypt's sovereign fund signed, last February, a cooperation agreement with the National Service Projects Organization to invest in its companies.

El-Said had previously said that Safi and the NPC were selected, and studies were conducted on them by a number of experts, specialists and expert houses.

She noted that the investment document for these companies has been completed and it will be offered to the private sector to invest in it as a first stage, then they will be floated on the Egyptian Stock Exchange and available to all Egyptians to own their shares and invest in them through the stock exchange.

“Cooperation will be made with the National Service Projects Agency in other companies that we will announce in turn. Offering it to the private sector in accordance with conditions and controls that ensure that it achieves the highest returns for the Egyptian state and creates real investment opportunities for the private sector in the first stage, as well as an opportunity for citizens to own shares in it and invest in its shares,” she added.