New Administrative Capital company to name int’l IPO advisor in 3Q of 2024

Doaa A.Moneim , Wednesday 1 May 2024

The Administrative Capital for Urban Development (ACUD) is scheduled to name an international initial public offering (IPO) advisor during the third quarter of 2024 (July-September), company CEO Khaled Abbas told CNBC on Wednesday.

Khaled Abbas
New Administrative Capital Company CEO Khaled Abbas. Photo courtesy of Forbes Middle East.


The ACUD will complete its restructuring in the near term, he added.

In December, Abbas stated that the company was preparing to go public under the IPO programme.

The size of the IPO will exceed the volume of trading on the Egyptian Stock Exchange, he said, noting that a share of the company may be offered in foreign stock markets.

"The offering may reach 10 percent of the shares of the main shareholders. It may not be conducted through a capital increase," Abbas explained.

The latest depreciation of the Egyptian pound will raise the cost of New Administrative Capital projects by 15 to 20 percent, he added.

Egypt devaluated the pound against the US dollar by over 60 percent, closing the gap between the foreign exchange rate in the official and parallel markets.

Abbas estimated the ACUD assets at around EGP 300 billion. Their value is expected to triple following the liberalization of the local currency.

Egypt’s divestment plan, including the IPO programme, is a key pillar of the country's second wave of structural and economic reforms that are backed by an Extended Fund Facility (EFF) loan of $8 billion from the International Monetary Fund (IMF).

The anticipated proceeds from the divestment of state-owned assets are slated to contribute 0.4 percent of GDP to increase the country’s primary surplus from 2.5 percent in the current FY2023/2024 to 3.5 percent in FY2024/2025, according to the IMF staff report on the first and second reviews of Egypt’s EFF loan released this week.

Egypt's IPO programme, which commenced in February 2023, has attracted $3.5 billion in investments thus far, Minister of Finance Mohamed Maait stated in January.

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