The Egyptian government is preparing to relaunch the initial public offerings (IPOs) program to offer state-owned companies on the Egyptian Exchange (EGX) said Minister of Finance Mohamed Maait.
This announcement comes as Egypt is inching closer to finalizing a deal with the International Monetary Fund (IMF), which will support the economy and consequently improve the odds for the offerings, Alia Mamdouh, Director-Macro and Strategy at Beltone Financial Holding (BTFH), commented.
On the other hand, the IPO program comes in line with Egypt’s need for financing in foreign currency, Mamdouh added.
The resumption of public sector companies’ offerings affirms the state’s commitment to the gradual exiting from some sectors according to the State Ownership Policy Document, Adjunct Professor at the American University in Cairo (AUC) Hany Genena said.
The move is aimed to attract foreign investments, whether from financial portfolios or direct investments in stakes of 10% or more [in the offered companies], to fund the deficit in the current account, Genena noted.
On August 31st, Prime Minister Mostafa Madbouly announced that the government is finalizing the final draft of the State Ownership Policy Document in a few days to be sent to the Cabinet.
Source: Egypt today
