The objective of the IPOs is to replenish the coffers of the State, which have been shaken by the repercussions of the war in Ukraine, and to double the weight of the private sector in the economy.
The Egyptian state expects to make between 5.5 and 6 billion dollars in the coming months, thanks to the introduction of several public companies on the stock market, the economic information site Asharq Business reported on Monday (September 12th). , quoting Planning and Economic Development Minister Hala El-Saeed (pictured).
“The first tranche of these IPOs will be announced within the next four weeks. It will lead to the transfer of State shares in companies for an overall value estimated at 2.5 and 3 billion dollars,” the Minister specified.
According to her, the second tranche of the IPOs should, for its part, allow the State to raise around 3 billion dollars.
Faced with serious economic difficulties since the start of the war in Ukraine, the government announced, last March, a vast program of privatization of several dozen public companies, including those owned by the army.
This privatization program, part of which will go through the Cairo Stock Exchange, should allow the most populous country in the Arab world to earn 10 billion dollars each year for four years. It also aims to increase the contribution of the private sector to the economy to 65% in 2025 against 30% in 2021.
According to the local press, the main IPOs scheduled this year concern Banque du Caire, Misr Fertilizers Production Company and Misr Life Insurance Company.