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Wednesday, 12 September 2018

Five state companies to list, sell shares in the EGX in 1Q2019

IPO WATCH- Five state companies to list, sell shares in the EGX in 1Q2019: It appears that the Madbouly Cabinet has settled on five companies to kick-off the second phase of the state privatization program in 1Q2019, Finance Minister Mohamed Maait told Al Mal on Tuesday. While he did not name the companies, he noted that some of the companies will be IPO. A Finance Ministry source had told us this week that Enppi will “likely” list shares in an IPO in 1Q2019. Based on previous comments by state and banking officials, we anticipate that Banque Du Caire is likely to list in 1Q2019, though that has yet to be confirmed officially. The source expects that a maximum two state companies will list shares in FY2018-19.

Eastern Company, AMOC will pilot program next month: Maait also revealed that Alexandria Mineral Oils Co. (AMOC) will join Eastern Company in launching the state privatization program in October in the second shakeup of the program’s phase one timeline since it was announced in July. Eastern and Heliopolis Housing and Developing (HHD) were originally slated to pilot program, but Public Enterprises Minister Hisham Tawfik suggested that Alexandria Container and Cargo Handling (ACCH) had replaced HDD for an October slot.

A little side note on AMOC: The firm will reportedly convert 500k shares into GDRs on the London Stock Exchange next week.

Advisors for Eastern, AMOC are in place: We have exclusively reported that HSBC has won the mandate to lead the sell-down of AMOC. EFG Hermes was tapped to manage the 4.5% sale of Eastern Company. Zaki Hashem & Partners, Zulficar & Partners, and Matouk Bassiouny are the shortlist to serve as legal counsel on the Eastern sale.

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