Egypt considers floating further stake in Telecom Egypt in EGX

Doaa A.Moneim , Tuesday 7 Mar 2023

Egypt’s government is considering floating an additional stake of Telecom Egypt in the Egyptian Stock Exchange (EGX) in 2023, up from the current 30 percent, the company said in a disclosure sent to the EGX on Tuesday.



The state has the majority stake in the company, owning 80 percent of its shares.

The step is in accordance with the country’s State Ownership Policy, which aims to raise the private sector share in the economic activity to 65 percent over three years, Telecom Egypt lists already 20 percent of its shares in the EGX.

Reuters said this week that Egypt plans to list an additional 10 percent of Telecom Egypt’s shares in the EGX in light of the state’s intention to resume its initial public offering (IPO) programme during the current FY2022/2023.

“Floating an additional stake in Telecom Egypt is under consideration, though no official actions have been taken,” the company said in the disclosure.

The Qatar Investment Authority is reportedly eyeing a stake in Telecom Egypt.

Telecom Egypt’s revenues grew by 10 percent in 2022, recording EGP 44.3 billion with a net profit of EGP 9.2 billion, the company said this week.

Egypt is expected to suffer a $17 billion financing gap through FY2025/2026. The government plans to bridge this gap mainly through state-owned asset sales.

Bridging this gap is a clear commitment Egypt undertook to the International Monetary Fund under its $3 billion loan deal for the country approved in December.

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