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Wednesday, 21 March 2018

Government to sell stakes in 4-6 companies on the EGX in 2018

IPO WATCH- The government plans to offer shares of 4-6 companies on the EGX in 2018 under its IPO program, including a chunk of Bank of Alexandria and 24% of oil services outfit Enppi, Finance Minister Amr El Garhy tells Al Mal. The issuances are expected to raise EGP 12-15 bn, according to the minister, who also said that the IPO program’s schedule and lineup is “flexible” and “could be amended” depending on how ready some companies are compared to others. El Garhy had said on Monday that the government intends to to select the first four or five companies that will list under phase one of the IPO program by September or October. The ministry had announced on Sunday a lineup of 23 state-owned companies that will IPO or list additional shares on the EGX over 24-30 months. Enppi is largely expected to be the pilot IPO of the program, while Banque du Caire should be the first of the banks to list, but not before 4Q2018.

The program will see listed at least 20% of the Middle East Oil Refinery (MIDOR) on offer, an unnamed EGPC official also tells the newspaper. The Finance Ministry’s Sunday announcement — which included around 11 companies from the oil and gas and petrochemicals sectors — had said that most companies would float between 15-30% of their shares on the EGX, raising some EGP 80 bn in additional capital. The EGPC official said the success of the IPO program will determine whether the government decides to add more companies from the sector to its list, noting that a number of them would qualify.

In related news, the Land and Maritime Transport Company is days away from setting a timeline for its exit from stakes it holds in companies on the state’s roster, Al Mal also says. Executives are expected to sit down with Public Enterprises Minister Khaled Badawy this week to discuss the schedule for listing shares from the Alex, Port Said, and Damietta container and cargo handling companies, a well as the Alexandria Oils and Minerals Company.

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