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Ahram Online: Egypt prepares for second wave of IPOs

CBE has announced that Banque du Caire will offer a stake of its shares, ranging between 30 and 40 percent.
22.08.19 | Interesting article at Ahram Online

Egypt’s government is gearing up to implement the second wave of Initial Public Offerings (IPO) in September.

Minister of the Public Business Sector Hisham Tawfik has said on Monday that preparations are underway to offer stakes in two state-owned companies, including Banque du Caire.

Tawfik declared in April that the second wave will involve new sectors that are not listed on the Egyptian Stock Market (EGX) in a bid to attract more investments and energise the stock market, as well as provide cash liquidity in the domestic market.

The governor of the Central Bank of Egypt (CBE) has announced that Banque du Caire will offer a stake of its shares, ranging between 30 and 40 percent, which is expected to garner between $300 million and $400 million at the most.

Official sources say that the government will also offer a share of 10 to 15 percent of E-finance, a national company which is operating the Egyptian government's financial network with a paid capital of EGP 350.5 million, to be the second company offered alongside Banque du Caire.

Head of E-finance Ibrahim Sarhan told Ahram Online that the offering "is subject to the government’s will, it is not a final order."

“We are already working on studying the market. We will finish our work within a month-and-a-half and all the results of our study will be announced in a press conference before the offering process,” Sarhan added.

The second phase of the IPO will include new sectors that do not exist on the Egyptian stock exchange, which will attract more investors, Minister Tawfik said.