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Sunday, 1 September 2019

Wave two of Egypt’s state privatization program kicked to early 2020

EXCLUSIVE- Wave two of state privatization program kicked to early 2020: The second wave of the state privatization program, which consists only of IPOs, has been postponed to after January 2020 from an original September 2019 date, Public Enterprises Minister Hisham Tawfik told Enterprise. “Some procedures have taken longer than expected, and we won’t be able to proceed until the end of the final quarter of the year,” Tawfik said. The IPO phase of the program will see 10 state-owned companies make their EGX debuts. The companies include eight operating in the manufacturing and mining sector, alongside Banque du Caire and payments platform e-Finance.

The first, non-IPO wave, meanwhile, is on track to wrap up by year end, Tawfik said, noting that the government is ready to sell stakes in each of Alexandria Containers and Cargo Handling Company (ACCH), Abu Qir Fertilizers, and Sidi Kerir Petrochemicals (Sidpec). The order, timing, size, and makeup of each of the offerings will be determined during a meeting scheduled for next week based on the opinion of investment banks quarterbacking the sales and market conditions, Tawfik said. We picked up local reports in July that ACCH will sell an additional 20% of its shares at EGP 15.6 apiece. Sidpec, meanwhile, was previously said is planning to offer 23%.

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