RIYADH: Egypt aims to float ten state-run companies on its stock exchange this year, in the form of initial public offerings and secondary offerings.
The announcement by the country’s finance minister Mohamed Maait, reported by Asharq, follows a cabinet statement on Tuesday, Feb. 1, as part of wider efforts to lure foreign investment and scale the Egyptian market’s attractiveness.
Four years ago, the government said it intends to offer minority stakes in 23 of its companies on the stock exchange, as part of an IPO program aimed at raising 80 billion Egyptian pounds ($5.09 billion) within 24 to 30 months.
The plan is to resume starting next March, Maait said.
He noted that the goal is increasing “participation of the private sector, expanding the ownership base, attracting more segments of investors to the Egyptian Stock Exchange, attracting more foreign investments, in addition to enhancing foreign investors’ confidence in the investment climate.”
In March 2019, the Egyptian bourse saw its first listed state-owned company when Eastern Co. for tobacco joined its blue-chip index EGX30 under the program.
However, the progress of the initiative was hindered by the rise of the pandemic, which almost froze IPO activity in Egypt.
