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Monday, 19 March 2018

Gov’t unveils the lineup for the state IPO program

IPO WATCH- Gov’t unveils the lineup for the state IPO program: The Finance Ministry announced on the Sunday the official lineup of 23 state-owned companies which will IPO or list additional shares on the EGX. Ten of the companies in the program are already listed, noted a statement from the Ismail cabinet, so look in each of those cases at a sale through an accelerated book-building process as the most likely scenario.

For the most part, the state will offer for sale 15-30% of each of the companies, the Finance Ministry said in a statement. The cumulative value of the listings, which will take place over the coming 24-30 months, is expected to reach EGP 80 bn and would raise their collective market capitalization to EGP 450 bn, the ministry added.

Finance Minister Amr El Garhy said on Sunday that the first stake sale would take place within two to three months, without specifying which company, according to Reuters. It had been reported a number of times that state energy firm Enppi would be the pilot IPO of the program. As we noted earlier this month, the IPO of Banque du Caire — the first state bank to list — won’t take place before 4Q2018. The statement notes that the program has received the approval of President Abdel Fattah El Sisi.

Companies named on the list are:

  • Banking and Finance: Banque du Caire | Misr Insurance | Bank of Alexandria | Housing and Development Bank | E-Finance.
  • Oil and Gas: Enppi | Middle East Oil Refinery (MIDOR) | Alexandria Mineral Oils (AMOC) | Assiut Oil Refining Company (ASORC) | Egyptian Drilling Company.
  • Petrochemicals: Sidi Kerir Petrochemicals (Sidpec) | the Egyptian Ethylene and Derivatives Company (Ethydco) | Abu Qir Fertilizers | Egyptian Methanex Methanol Company (EMethanex) | Egyptian Linear Alkyl Benzene Company (ELAB) | El Wadi Phosphate Company.
  • Transportation and Logistics: Alex Container and Cargo Handling | Port Said Container & Cargo Handling | Damietta Container & Cargo Handling.
  • Industry: Egyptalum.
  • Real Estate: Heliopolis Housing & Development | Madinat Nasr Housing and Development (MNHD).
  • Consumer goods: Eastern Company.

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