IPO WATCH- Qalaa to list shares of TAQA Arabia and the parent company of ERC before end of 2019 as part of five-year IPO program: Qalaa Holdings is planning to list a number of its subsidiaries on the EGX over the next five years, beginning with the initial public offering of TAQA Arabia in 3Q2019 followed by the offering of around 30% of the Arab Refining Company before the end of the year, Qalaa Chairman Ahmed Heikal told Al Mal in an interview. The Arab Refining Company is the largest shareholder in Qalaa’s nearly USD 4 bn Egyptian Refining Company in Mostorod.

Qalaa plans to list all of its eight existing subsidiaries on the bourse before the end of 2023, including river transport-focused Nile Logistics. Dina Farms and ASCOM are up for listing in 2020, while Tawazon, the National Development and Trading Company, the National Printing Company, and the United Foundries Company will IPO in 2021 and 2022.

Qalaa will retain controlling stakes in all eight companies, according to Heikal, who says the offerings will help raise enough capital for Qalaa to pay off its debts, which currently stand at around USD 270 mn. Heikal also said that Qalaa will not be taking on any more debt over the coming five years, unless it enters into another large-scale project like the Egyptian Refining Company (ERC).

Further divestments in the pipeline: Having sold a number of non-core investments in recent years, Qalaa is now working to sell its stakes in Algerian cement maker Zahana, civil works contractor ESACO, and medical services provider Allmed.