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Egypt to float state shares to boost stock market

The Egyptian government has decided to sell shares in state-owned companies as part of the series of economic reforms connected to its $12 billion loan from the International Monetary Fund.
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Egypt will float shares in state-owned companies as of June 1 in an effort to boost public assets and attract more local and foreign investors to stimulate the Egyptian stock market. According to a report released by the Finance Ministry on May 15, the first round of the initial public offering (IPO), to run through early next year, will include shares in four to six state-owned companies in the petroleum, manufacturing and petrochemical sectors. The shares have an estimated value of 15-18 billion EGP ($852 million-$1.02 billion), according to the report.

On May 16, Prime Minister Sherif Ismail issued a decree  to form a ministerial committee entrusted with managing the IPO. The committee will consist of the ministers of investment and international cooperation, petroleum, trade and industry, finance, planning and public enterprise.

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