Abu Kir is next up in Egypt’s privatization program
Abu Kir is next up in the privatization program: Abu Kir Fertilizers is next up in the state privatization program as the government prepares to sell a 20% stake on the EGX, sources close to the matter told the local press. The sale’s lead managers, private sector investment banks CI Capital and Renaissance Capital are currently working with the government to finalize the book building process. It was previously believed that the second company to take part in the program would be Alexandria Containers & Cargo Handling (ACCH), which plans to sell a 30% stake. The government is expected to raise up to EGP 8 bn in sale proceeds from the ACCH and Abu Kir offerings.
Background: The government successfully kicked off the program last month with Eastern Tobacco’s secondary offering of a 4.5% stake. Eastern, Abu Kir, and ACCH, along with Heliopolis Housing, are part of the first wave of companies piloting the program — which will only see share sales and not IPOs. Alexandria Mineral Oils Company (AMOC) was also part of the wave, but it got sidelined earlier this year for falling profitability. Public Enterprises Minister Hisham Tawfiq previously said all offerings in the first wave will wrap up before the Eid El Fitr break.