Egypt's TSFE, NSPO enlist consulting firms to restructure 5 army-affiliated companies ahead of IPO
of the agreements.
In December 2024, PM Madbouly announced the government's plan to list four companies affiliated with the Armed Forces on the Egyptian Stock Exchange (EGX) in 2025.
The move represents the first time the government has offered army-affiliated companies to investors since the start of its IPO program in 2024.
It comes in line with Egypt's State Ownership Policy document and its commitment to the International Monetary Fund (IMF) under the ongoing $8 billion Extended Fund Facility (EFF) loan programme.
The specialized local and international consulting firms overseeing the restructuring include EFG Hermes for underwriting and coverage and CI Capital for underwriting and coverage.
Legal advisers include ADSERO, Ragi Soliman and Associates Law Firm, and Matouk Bassiouny Law Firm.
Accounting and tax advisers include Grant Thornton and PricewaterhouseCoopers (PwC).
Commercial and strategic advisers include Boston Consulting Group (BCG).
Wednesday's agreements are part of the measures and steps the relevant state agencies took to implement the government's initial public offerings (IPO) programme.
This involves offering several state-owned companies to private sector institutions for management and operation, per the government's state ownership policy document.
These agreements specifically relate to the offering of a group of companies from the NSPO, including the National Petroleum Company, Chill Out, Silo Foods for Food Industries, Saffi, and the National Roads Company, through a group of specialized local and international consulting firms, as part of the framework agreement signed between the National Service Projects Organization and the Sovereign Fund of Egypt for Investment and Development. Under this agreement, the fund will restructure and manage the military-owned companies' offerings.
According to the agreements, the offering of some of these companies is expected to be completed by 2025.