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The Egyptian Exchange (EGX) will see a revival of the Egyptian government’s IPO programme in the fourth quarter (Q4) of 2021, informed sources have told Daily News Egypt.
This will take place through only one offering, which may be Banque du Caire or e-finance.
It was expected that this year will see a flow of offerings from the private and public sectors, such as e-finance, Banque du Caire, Ebtikar for Financial Investments, the Giza Spinning and Weaving Company, and several Armed Forces affiliated companies.
The sources also believe the IPOs of army companies will be postponed until 2022, as government offerings will dominate the scene.
Therefore, the offerings on the EGX from public and private sectors during 2021 may be limited to two or three offerings at most.
The sources added that the private sector’s possible IPOs may also be limited to only one offering, which is expected to be Ebtikar.
The company currently includes under its umbrella Masary and Bee for electronic payments, and Basata Finance, which includes under its umbrella Tamweel Holding for micro, small, and medium enterprise (MSME) finance. It is expected that Basata will debut on the EGX in 2022 as well.
It is expected that the EGX will rebound in the coming months, in conjunction with the flow of offerings. This is amid assurances that the Egyptian capital market needs to diversify and increase the securities traded on it.
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