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Sunday, 19 March 2023

Elab first up for sale via SFE’s pre-IPO fund -Soliman

First up from the SFE’s pre-IPO fund: Egyptian Linear Alkyl Benzene (Elab) will be the first company to go to market via the Sovereign Fund of Egypt’s (SFE) pre-IPO fund, fund head Ayman Soliman reportedly told Al Borsa. Soliman didn’t disclose further details relating to the sale, but we expect the transaction to include an initial public offering of shares on the EGX.

We still don’t know which firms are in the fund: Eight companies have now been added to the fund, Soliman reportedly told the newspaper, without disclosing names. Al Borsa reported last week that the SFE is adding state ins. company Misr Ins. Holding to its portfolio, while an unconfirmed report in January claimed that Banque du Caire, Misr Life Ins. and Elab.

Safi and Wataniya are not included in the fund, Soliman told Al Borsa. CI Capital has reportedly started marketing the two military-owned companies to strategic investors, with the goal of selling c. 10% of each.


Six of the first eight companies set to debut on the EGX under the state privatization program are oil or petchem players, according to a separate report by Asharq Business, citing sources it says are close to the matter.

The lineup: The news outlet says that a preliminary list of state-owned firms earmarked for IPOs include Enppi, eMethanex, Midor, Assiut Oil Refining Company (ASORC), Ethydco, and El Wady for Phosphate Industries and Fertilizers (WAPHCO) — all of which were flagged by the EGX earlier this year as being in line for privatization. Also reportedly on the list are the Port Said and Damietta container terminal operators, in which the Qatari sovereign wealth fund is reportedly attempting to acquire majority stakes.

32 becomes 37? Enppi, eMethanex, Midor, ASORC and WAPHCO were not on the initial list of 32 companies announced by Prime Minister Moustafa Madbouly in February. Finance Minister Mohamed Maait said last week that the government could add more names to the line-up, without providing details.

BACKGROUND- The government plans to sell stakes in 32 state-owned companies on the EGX, to strategic investors, and a mix of both as part of its rebooted state privatization program. The SFE set up its pre-IPO fund in September 2022 to prepare state-owned companies for eventual listing on the EGX.

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