The government committee supervising the state IPO programme gave the green light for resuming offering process of the Engineering for Petroleum and Process Industries (Enppi) on the Egyptian Exchange (EGX).
Officials responsible for the offering process have resumed their meetings with Enppi’s representatives in the past period, an informed source told Daily News Egypt, adding that they are currently reviewing the financial statements and commitments of the company which are set to be completed by next month.
The government intends to complete the offering process this year after consulting the IPO advisors to determine the suitable date, amid high expectations to be implemented during the second half of the year, according to the source.
He predicted offering 25 – 30% of Enppi on EGX, as well as the issuance of international certificates of deposit on the London Stock Exchange.
Several years ago, the government announced its intention to offer minority stakes of the state-owned companies in EGX. It set several companies in the IPO programme, including Enppi and Banque du Caire, however, it announced a shortened list of four companies last year including already listed companies in EGX, excluding ENPPI and the bank.
The government has signed a deal with CI Capital, Jefferies Group, and Emirates NBD to run Enppi offering. It also has appointed Baker & McKenzie firm as a local and international legal consultant for banks, Zaki Hashem & Partners Law Firm as a local legal consultant for the offering company, and PricewaterhouseCoopers (PwC) as auditing supervisor.
“The committee will convene by the end of February to determine the companies that will be included in the second phase of the IPO programme,” said the Minister of Public Enterprises Sector and member of the committee, Hesham Tawfik.
Earlier, the Finance Minister and the committee’s chairperson, Mohamed Moeit, told Daily News Egypt that the second stage of the IPO programme would include about four or five companies, of which companies that would be offered for the first time in the stock market.
Enppi’s total revenues reached EGP 4.9bn in 2016 up from EGP 3.7bn in 2015, a growth of 135%.