President Sisi instructs gov't to continue working on IPOs programme of state-owned companies

Ahram Online , Sunday 13 Feb 2022

Egypt's President Abdel-Fattah El-Sisi instructed the government on Sunday to continue to launch more Initial Public Offerings (IPOs) of state-owned companies to increase the ownership base at the Egyptian Stock of Exchange (EGX) and lure direct investments.

Sisi instructs
Egypt's President Abdel-Fattah El-Sisi during a meeting on Sunday with economic cluster ministers (Photo courtesy of Presidential Spokesperson)

During a meeting on Sunday with economic cluster ministers, El-Sisi called for diversifying the programmes of offerings to cover different economic sectors, said a statement by Presidential Spokesman Bassam Rady.

Financial Minister Mohamed Maait briefed the president on the plan of offerings through December, highlighting the companies whose shares are expected to be listed on the Egyptian bourse.

Egypt launched its IPO programme in March 2019, offering the first state-owned company, Eastern Company's Tobacco Monopoly, to be listed on the EGX under the IPO programme. The offering included a 4.5 percent of shares of the company on the EGX, with a total value of EGP 1.7 billion pounds ($99 million).

The programme came to a halt in 2020 due to the coronavirus pandemic, but it was resumed in October 2021, when the Egyptian state-owned payments firm e-finance for Digital and Financial Investments made its debut on the stock market.

In late December 2021, the Egyptian cabinet said the country was planning to list shares of the three power plants it has built in partnership with Germany's Siemens on the stock exchange, in addition to other public companies.

The country plan comprises listing a number of the country's Armed Forces affiliated companies on the EGX during 2022, a move that was first proposed by El-Sisi in 2019.

Manufacturing electric cars

The president, during Sunday's meeting, was also briefed on the latest developments of the government plan regarding the automobile industry, Rady said.

El-Sisi instructed to continue working on deepening the localization of manufacturing electric vehicles to keep pace with the global trend in this regard.

Egypt is set to launch ‘The Automotive Industry Strategy in Egypt’ to consolidate the localisation of the automotive industry and auto feeding industries, with the aim of attracting more investments to the vital sector.

The county currently is in talks with several national and international companies to manufacture battery-powered cars. It seeks to localise these environment-friendly cars, reduce dependence on fuels, and keep pace with global progress in the automobile industry.

In July, Egypt inaugurated the first integrated fuel station in Cairo’s Abbasiya district which will serve vehicles running on natural gas, gasoline, and electric charging, with plans to set up a network of 3,000 electrical-charging stations in the near future.

Search Keywords:
Short link: