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No state-owned company to be sold whole: Hesham Tawfik - Daily News Egypt

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No state-owned company to be sold whole: Hesham Tawfik

Emerging markets crises will not affect planned IPOs, state to keep 40% ownership

The Minister of Public Enterprise Sector Hesham Tawfik announced in a press conference on Monday the reform plan for the state-owned companies, and the ones which are profitable will be listed on the Egyptian Exchange (EGX).

Tawfik explained that the initial public offering (IPO) programme does not aim to sell whole companies, rather the target is to increase the percentage of private-sector shareholders’ ownership, in profitable companies.

“The state will withhold the ownership of 40% of these companies, that way the private sector can be present in the board of such companies, and participate in the management,” Tawfik emphasised, adding that the ministry does not target to sell those shares to anchor investors, but to any individual and entity.

The minister stressed that the ongoing emerging markets’ crisis maybe is not the perfect timing, however, it will not affect the IPO, as the main target group are not foreign investors, and any further delays in the programme would send a wrong message.

In March, the Ministry of Finance said it was planning to offer up to 23 state-owned companies on the Egyptian bourse at a total value of EGP 80bn as part of the first phase of the government’s IPOs programme, which aims to raise the EGX’s market capital, as well as boost daily trading volume.

The buzz around IPOs in Egypt is growing louder, with more companies announcing plans for share sales.

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