Back to the complete issue
Wednesday, 4 July 2018

Qalaa to list shares of TAQA Arabia and the parent company of ERC before end of 2019 as part of five-year IPO program

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.

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.