The Egyptian Minister of Investment, Dalia Khorshid, said that the country is set to launch its initial public offerings (IPO) in government-owned companies with oil sector businesses, aiming to collect up to $10b within three to five years, Bloomberg reported.
The IPO is expected to take place in December 2016 and January 2017. According to Petroleum Minister, Tarek El Molla, the phase will bring a number of petroleum companies to the market for the first time. Those include the Middle East Oil Refinery Company (MIDOR) and the Egyptian Ethylene and Derivatives Company (ETHYDCO). Registered companies, such as Alexandria Mineral Oils Company (AMOC), Sidi Kerir Petrochemicals company (Sidpec), and Misr Fertilizers Production Company (MOPCO), will also be offered, informed the Daily News Egypt. While utility companies, such as electricity, will be launched at a later stage.
Khorshid added that the government is studying which companies will participate in the program, and will pick local and international investment banks to advise on the offerings.
The share sales are part of a broader government plan to help fund the country’s budget gaps deficits and encourage foreign investment in the economy.