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Monday, 11 February 2019

Government expects to announce list of IPO companies within two weeks

Government expects to announce list of companies for privatization program within two weeks: The government is preparing a list of four companies that will sell shares via IPO in phase two of the state’s privatization program, Public Enterprises Minister Hisham Tawfik told Hapi. Tawfik said the first phase of the program, which focuses on stake sales by already-listed companies, will start soon. Eastern Tobacco will pilot the program with the sale of a 4.5% stake, while AMOC is off the sale list after its profitability deteriorated. Sources had earlier told us that the program might kick start as early as March.

Background: Phase one of the program was delayed last year as the Emerging Markets Zombie Apocalypse bit the EGX. A number of companies in the program announced conditions before proceeding, including Eastern Tobacco, whose stake sale hinges on the share price rising to EGP 18.70, and AMOC, which is looking to return to profitability before selling shares.

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