Egypt aims to sell stakes in 32 state-owned companies on the EGX through IPOs, sales to strategic investors, or a combination of both as part of its state privatization program
Egyptian Linear Alkyl Benzene (Elab) is set to become the first company to go to market via the Sovereign Fund of Egypt’s (SFE) pre-IPO fund, according to chairman Ayman Soliman.
Although the fund head did not disclose details of the sale, it is expected to include an initial public offering (IPO) of shares on the EGX.
Soliman also revealed that eight companies have now been added to the fund, but declined to reveal names. State insurance company Misr Insurance Holding was reported by Al Borsa to be joining the SFE’s program.
Safi and Wataniya are not part of the SFE’s fund, according to Soliman. CI Capital has begun marketing the two military-owned firms to strategic investors with the goal of selling approximately 10% of each.
Asharq Business has reported that six of the first eight companies slated to debut on the EGX under the state privatization program are petrochemical players.
Enppi, eMethanex, Midor, Assiut Oil Refining Company (ASORC), Ethydco, and El Wady for Phosphate Industries and Fertilizers (WAPHCO) are all on the preliminary list of state-owned companies being prepared for IPOs, alongside container terminal operators Port Said and Damietta.
Egypt aims to sell stakes in 32 state-owned companies on the EGX through IPOs, sales to strategic investors, or a combination of both as part of its state privatization program.
The SFE set up its pre-IPO fund in September 2022 to prepare state-owned companies for eventual listing on the EGX.
Finance Minister Mohamed Maait stated last week that an additional eight companies could be added to the privatization list set to be offered within the year, but did not provide further details. The government anticipates “billions of dollars in the coming year” from the sales, according to the finance minister.