Egypt’s President Abdel Fattah Al-Sisi followed up on the government programme for the initial public offering (IPO) of state-owned companies in a meeting with Prime Minister Mostafa Madbouly and Minister of Finance Mohamed Maait.
The meeting was also attended by Central Bank of Egypt (CBE) Governor Tarek Amer, Minister of Planning Hala El-Said, Minister of Public Enterprise Sector Hisham Tawfik, Minister of Trade and Industry Nevine Gamea, and several other officials.
According to a statement from the Egyptian Presidency, Al-Sisi directed the government to expand in listing companies on the Egyptian Exchange (EGX) and attract direct investments in the upcoming period.
In March 2018, the government announced a list of 10 companies that will list 15-20% of additional shares on the EGX. The government IPO programme, however, witnessed repeated postponements since the global market turmoil of 2018.
The cumulative value of the listings is expected to rise to EGP 80bn, raising the collective market capitalisation to EGP 450bn.
The Egyptian president also directed the government to take into account the diversity of the programme to cover various economic sectors.
The state-run IPO scheme aims to develop the Egyptian capital market and attract liquidity to the EGX as well as provide promising investment opportunities.
Consequently, this is expected to boost the investment volume in securities and strengthen the EGX’s position as one of the best-emerging stock exchanges, according to previous announcements.
Furthermore, Maait presented the state’s plan for the IPO programme until 31 December 2022, including the companies selected to be listed on the EGX.
Amer also showcased the contribution of the banking sector to the IPO scheme in the coming period.
Earlier, Mohamed Omran, the Chairperson of the Financial Regulatory Authority, told Daily News Egypt that the list of IPOs includes the offering of Ghazl Al-Mahalla SC Company along with many other IPOs.
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