Four new public companies will be listed on the Egyptian stock market “very soon”, Minister of Investment Ashraf Salman said Monday.
Salman added that the names of the first two companies will be announced in the next two days. He stated that the other two companies have yet to be selected.
Investment banks will be delegated to handle the initial public offerings (IPOs) of the first two companies, the minister highlighted. Salman pointed out, however, that the first two companies will have their IPOs within the first quarter of 2016.
“A local bank will be selected that will bring along investment banks,” the minister told Daily News Egypt.
In late March, Misr Oil Processing and Fertilizers Company (MOPCO) filed for the official listing request with the Egyptian Exchange, the first public company to list on the capital market in several years. The company’s request came with a capital of EGP 2.3bn.
“The petroleum sector is currently expanding, so it needs the proper financing in order to be able to implement these expansions,” Salman added.
Last month, chairman of the Egyptian Exchange Mohamed Omran said the IPOs of public companies will mainly be through capital increase.
“There is a difference, however, between selling existing shares and increasing capitals,” Omran said. “The company doesn’t sell their shares in the market but rather increase the capital and allow the public to share and participate.”