CIHC to sell only 4% of Eastern Tobacco Company, maintain controlling stake
IPO WATCH- CIHC to sell only 4% of Eastern Tobacco, will keep a controlling stake: The Chemical Industries Holding Company (CIHC) is planning to sell only 4% of its stake in the Eastern Tobacco Company under the state’s IPO program and retain a controlling 51% stake, CIHC Chairman Emad El Din Mostafa said yesterday. 45% of Eastern Tobacco’s shares are already in free float, but the company was placed last week on the official lineup of 23 state-owned companies that will IPO or list additional shares on the EGX under phase one of the program. Mostafa provided no details on timeline for what will likely be an accelerated book build to pair-down CIHC’s stake. He said, however, that the CIHC would use the proceeds from the transaction to fund new investment at some of its subsidiaries.
Background: Finance Minister Amr El Garhy had said on Saturday that the government was meeting with investment banks to decide the first of the 23 state companies slated to sell stakes. He had also said last week that the government would make a decision by September or October and was planning to offer shares of as many as 4-6 companies in 2018. Enppi had largely been expected to be the first IPO the program while Banque du Caire was expected to be the first of the banks to list.