Egypt to offer 4.5 percent of shares in state-owned Eastern Tobacco next week

Ahram Online , Friday 1 Mar 2019

File Photo: A view of the Eastern Company SAE, which is engaged in manufacturing tobacco products, in Cairo, Egypt September 27, 2018. (Photo: Reuters)

Egypt’s Public Enterprise Sector Minister Hisham Tawfik announced the resumption of a programme to sell stakes in state-owned Egyptian companies by offering 4.5 percent of shares of Eastern Tobacco Company on the Egyptian exchange.

The Chemical Industries Holding Company announced the offering of 4.5 percent of the shares of Eastern Tobacco to the stock market, with 95 percent in a private offering, and 5 percent for public offering.

The minister confirmed that the IPO will take place from Sunday to Tuesday.

The first stage of the programme was announced in March 2018 with the aim of strengthening the Egyptian capital market and attracting more liquidity to the Egyptian stock exchange.

However, it was postponed in October 2018 due to the emerging markets crisis and global market volatility.

The programme will also see shares offered in Alexandria Container and Cargo Handling Company, Abu Qir Fertilizers and Chemicals Industries Company, and Heliopolis Company For Housing and Development.

The government announced in September 2018 that it is working on a programme to offer shares of dozens of its companies over the next three to five years in sectors such as oil, services, chemicals, shipping, marine services and real estate, to help support the state's public finances.

The last public offering of state-owned companies was in 2005 when shares of Telecom Egypt, AMOC and Sidi Kerir Petrochemicals Company were sold.


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