Back to the complete issue
Sunday, 24 July 2022

FEMCO eyes EGX debut

Engineering and contracting company FEMCO is looking at potentially IPOing on the EGX within the next two years, Al Mal cites Managing Director Ahmed Hassan as saying. The company would list 49% of its shares on the bourse to finance its expansion plans, which include a foray into real estate development by setting up a new company under FEMCO’s umbrella, according to Hassan. FEMCO is also looking to expand into education, sports, and hotels in a second phase of its expansion plans.

About FEMCO: FEMCO is an EPC contractor working in the oil and gas, petrochemicals, and power industries established in 2016.

FEMCO would need to grow its capital 50x to qualify for entry on the EGX: The company’s capital currently stands at EGP 10 mn and plans to kick off several rounds of capital increases as of the beginning of next year to bring that figure to EGP 500 mn to be able to list on the bourse, Hassan said.

The company might also look at bringing in a strategic investor as an alternative to IPOing, Hassan said. Opting for equity sales to strategic investors is also gaining steam in the state’s privatization plans. Public Enterprises Minister Hisham Tawfik had said earlier this year that the state plans to sell a 25-30% stake in EGX-listed EgyptAlum to a strategic investor, and also plans to offer a stake of up to 25% in the company it will create through a merger of seven or eight state-owned hotels.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.