Egypt: Misr Insurance among 23 state entities to be listed on stock exchange
Source: Middle East Insurance Review | May 2018
The Ministry of Finance has selected 23 companies for the first phase of the state IPO programme, including the country’s biggest insurer, Misr Insurance.
The government will offer 15-20% of stocks in each of the companies in IPOs to be launched over the next 24 to 30 months. The cumulative value of the listings is expected to rise to EGP80bn ($4.5bn), raising the collective market capitalisation to EGP450bn, reported Egypt Today citing a statement from the Ministry of Finance.
The state-owned companies involved are engaged in banking and finance, oil and gas, petrochemicals, transportation and logistics, real estate and industry.
The IPOs will have the support of the International Finance Corporation (IFC) as it invests in several industries, including the financial sector, IFC country manager in Egypt, Libya and Yemen, Mr Walid Labadi said.
IFC is open to looking into opportunities associated with the IPOs, said Mr Labadi, adding that Egypt’s economic reforms, including the potential privatisation of some state-owned enterprises, are an encouraging step and could help unleash the promise of the private sector.
The state IPO programme is undertaken in light of the economic reform programme adopted by Egypt. It is conducted under the supervision of the Ministry of Investment.
The IPO programme for state-owned companies is the second since 2005, when the government offered shares in Telecom Egypt, Alexandria Mineral Oils and Sidi Kerir Petrochemicals (Sidepic). M
EGP1 = $0.06