Egypt’s plan to float some state-owned companies on the Egyptian stock exchange is expected to add LE 10 billion to state coffers in the new fiscal year 2018/19, preliminary financial statement for the 2018/19 budget shows.
In 2016, Egypt announced a five-year program to offer shares in some state-owned companies on the Egyptian Exchange (EGX) under a five-year program to attract investment and invigorate the stock market.
Egypt selected 23 state companies last month for the first phase of the state IPO program. A Finance Ministry statement said that market value of the soon-to-be-listed companies stands at LE 430 billion, adding that the government intends to float about 15-30 percent of the companies on the EGX.
Prime Minister Sherif Ismail said last week that the government’s IPO program aims to invigorate the stock market and provide financing to the companies so that they can expand.
He said the program does not aim to lay off workers but seeks to support the companies’ capabilities to grow and improve.
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), six companies in the petrochemicals sector, including Sidi Kerir Petrochemicals Co and 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.