Egypt selling off state-owned companies for first time in 12 years
The Egyptian government has announced the start of its initial public offering of some state-run companies during the next two months, a step allegedly aimed at bolstering the country’s stock exchange.
CAIRO — Egyptian Prime Minister Sherif Ismail announced July 3 that the government is discussing the necessary procedures for the sale of shares of some state-owned companies on the stock exchange, with Engineering for the Petroleum and Process Industries company (ENPPI) being the first, to be followed by several public sector companies and banks within the next two months.
This is Egypt’s first initial public offering (IPO) of a state-owned company in 12 years. In 2005, Egypt sold shares in Telecom Egypt, Alexandria Mineral Oils Company and Sidi Kerir Petrochemicals Company.
The Egyptian government’s recent IPO falls within the scope of the requirements of the International Monetary Fund (IMF) on a $12 billion loan signed with Egypt on Nov. 11 to support the Egyptian government's economic reform program, which called for IPOs of state-owned companies in the first quarter of 2017.
This measure is also part of a plan of action submitted by former Minister of Investment and International Cooperation Dalia Khurshid to the government on Aug. 19, 2016. The ministry had drawn up a plan to attract indirect investment through a five-year program in which several state-owned companies and banks would be listed on the stock exchange.
