NIB to select nine companies for second phase of Egypt’s privatization program
**#2 IPO WATCH- NIB to select nine companies for second phase of state privatization program: The National Investment Bank (NIB) is expected to nominate nine state-owned companies for the second phase of the state privatization program, according to a Planning Ministry statement. The statement did not provide further details on the selection process or when NIB is expected to unveil the lineup, but noted that all companies being considered have strong financials and have brought in a combined EGP 4 bn in dividend revenues for the bank.
Background: Public Enterprises Minister Hisham Tawfik had said last month that the government would announce the second phase of the privatization program by the end of 2018. The committee overseeing the program is also scheduled to hold a meeting this month to look into how market conditions developed since the stake sales were put on ice last October amid the emerging markets selloff. A senior government official had told us that the program could resume as early as 1Q2019 or as late as the start of the new fiscal year in July, based on market conditions. The state could use the delay to tweak the list of already-traded companies set to sell additional shares and companies set to make an initial public offering under the program, the source said.