ENPPI would be first company to go on IPOs program

The Egyptian government is in meetings on Tuesday to discuss the details of putting ENPPI company up for an initial public offerings (IPOs) on the Egyptian stock exchange.

The Investment Ministry announced in August last year that the government will target state-owned firms in the banking, petroleum and electricity sectors for the first wave of its privatization program, selecting several companies for IPOs on the Egyptian stock exchange.

The privatization program comes within the framework of the state’s plan to diversify investment sources and raise growth rates by attracting investment in industry. According to government figures, the program is expected to attract nearly US$10 billion over three years.

On Tuesday, a ministerial committee supervising the program discussed putting ENPPI on the IPOs program, as well as to promote it. The committee also agreed to expediting the offering of more state-owned companies in the program.

Minister of Investment and International Cooperation Sahar Nasr said Tuesday that the success of ENPPI in the program will be the standard for measuring the success of offering other companies during the next stage.

The state-owned company’s IPOs program aims at activating the stock exchange, adding new sectors, increasing the liquidity of the capital market, developing the companies, structuring their finances and activating their investments, enhancing transparency and governance in dealing with the assets of the state and its companies, attracting foreign investment and diversifying sources of income, while retaining the ruling share in these companies.

Prime Minister Sherif Ismail also held a meeting on Tuesday with the ministerial economic committee. The meeting discussed the implementation of the IPOs program.

Minister of Finance Amr al-Garhi said that the economic group discussed the IPOs program, and agreed that it would take a period of 18 to 24 months.

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