Egypt's Prime Minister Mostafa Madbouly said on Monday that the government's IPO programme to float shares in a number of state-owned companies will contribute to energising the stock market, raising the market value of the companies’ shares, and diversifying sources of financing, in order to expand investments.
Madbouly headed an economic ministerial committee meeting on Monday to discuss the latest developments in the government's IPO programme, as well as other issues, such as the reduction in public debt.
Madbouly said that the IPO programme will contribute to energising the stock market, raising the market value of the companies’ shares, and diversifying sources of financing, in order to expand investments.
The meeting was attended by the ministers of finance, investment, social solidarity, planning, industry, electricity, and transportation and the governor of the central bank.
The prime minister also discussed developments regarding the decrease in the national debt, while maintaining a high growth rate and not increasing the budget deficit.
Earlier this year, the former minister of finance said Egypt is set to float shares in four to six state companies in 2018, with the aim of raising EGP 12-15 billion ($680-$850 million).
In a statement released in July, the Egyptian cabinet announced that stated-owned Alexandria Mineral Oils Company, Eastern Tobacco, Alexandria Container and Cargo Handling, Abou Kir Fertilisers, and Heliopolis Housing would be listed on the stock market.
Egypt’s budget deficit in the 2017/18 fiscal year was 9.8 percent of gross domestic product (GDP), down from 10.9 percent in the previous fiscal year, according to a statement released by Finance Minister Mohamed Maeet last week.
Egypt’s total public debt reached EGP 3.4 trillion (approximately $190 billion) by the end of December 2017, representing 83.8% of GDP, the central bank announced last month.