Egypt’s Finance Minister Mohamed Mait (Photo: Ahram gate)
Egypt's Minister of Finance, Mohamed Mait, announced the launch of the implementation of a programme to sell stakes in publically owned Egyptian companies. The programme will start by offering 4.5 percent of Eastern Tobacco company's shares.
The minister explained that the government consultant for the program chose EFG Hermes, given their quality technical and financial advice for the launch.
He added that this proposal falls in line with the directives of Egypt's Prime Minister, Mostafa Madbouli, to accelerate the implementation of the first stage of the programme. The programme aims to strengthen the Egyptian capital market and attract more liquidity to the Egyptian stock exchange, with the intent to make it one of the best emerging markets in the world.
Mait expects the shares' offering could raise about EGP 2 billion, pointing out that the timing of the offering is determined in agreement with EF G Hermes in order to choose the best date for the Initial Public Offering (IPO) on the Egyptian stock exchange.
In the fourth quarter of this year, it is expected there will be an introduction of additional shares for a group of companies including Alexandria Mineral Oils Company, Abu Qir Fertilizers, and Alexandria Container and Cargo Handling, all in order to expand their ownership base and increase daily trading volume in the Egyptian capital market.
Part of the proceeds from the offerings will be used to finance state budget, Mait added.
Currently, the state owns a significant part of Egypt's economy, including three of its largest banks - National Bank of Egypt, Banque Du Caire, and the United Bank of Egypt - along with much of the oil industry and real estate sector.