IPO WATCH- Fintech company e-finance will IPO as part of the second privatization wave: State-owned financial technology company e-finance will be part of the second wave of the state privatization program, which is set to begin as early as September, Public Enterprises Minister Hisham Tawfik said, without providing further details. E-finance is majority owned by the state’s National Investment Bank (NIB), while major shareholders include the National Bank of Egypt, Banque Misr, the Egyptian Banks Company, and the Egyptian Company for Investment Projects. We heard last year of plans by NIB to list as many as 9-11 of its holdings on the EGX. Tawfik told us last month that the second wave of privatizations is expected to only involve new listings, and companies in the industrial, mining, and E&P sectors will be prioritized. One company will IPO each month, he said.

Background: The government kicked off the first wave of the program last month with Eastern Tobacco’s secondary offering of a 4.5% stake. It is planning to soon offer a 20% stake sale in Abu Kir Fertilizers, which sources said earlier this month would be the second company in line. Alexandria Containers & Cargo Handling and Heliopolis Housing will also be part of the initial wave, which Tawfik said will finish before the Eid El Fitr break. All EGX sales in the first wave will be secondary offerings.