EGX expands IPO programme with 6 new state firms – chairman
Egypt’s Egyptian Exchange (EGX) is expanding its initial public offering programme (IPO) with the addition of six new state-owned companies, following the completion of the previous listing phase, as part of ongoing efforts to deepen market activity and broaden the investor base.
Mohamed Sabri, EGX Deputy Chairman , said on Tuesday during a meeting with with Hisham El Sayed, Chief Executive Officer of the state-owned enterprises unit, to finalise arrangements for the temporary listing of the newly added companies, in continuation of earlier listings announced last week.
Sabri said six government companies have been submitted under the government’s IPO programme announced by the Cabinet, including four companies to be listed on the main market and two companies on the small and medium-sized enterprises market. The latter marks the first time state-owned companies are being listed on that segment.
He added that the expansion reflects the continued rollout of the IPO programme following the completion of the previous phase. The new listings include Sinai Manganese Company, Springs and Transport Equipment Manufacturing Company, Egyptian Construction Co. Al Abd, and El-Nasr Housing and Development Company on the main market, alongside the National Company for Asset Management and Al Ahly for Investment and Development NORCO on the SME market.
Sabri noted that the move aims to increase and deepen market capitalisation, expand the number of listed companies, improve liquidity and trading activity, and attract additional investment inflows.
He also indicated that preparations are underway to list a number of petroleum sector companies, which are expected to enhance sectoral diversification and increase the market’s attractiveness, particularly to foreign investors.
Sabri reaffirmed that coordination with petroleum sector firms is ongoing to complete listing requirements, describing the process as a key step towards strengthening confidence in the stock market, expanding the base of listed companies, and improving overall market efficiency and depth.