Egypt Oil Ministry targets raising EGP15 billion from Planned IPOs

Egyptian oil sector seeks to raise around EGP 15 billion (around US$2 billion) from its firms’ planned IPOs on the local bourse, oil minister Sherif Ismail affirmed on Wednesday.

He noted that ten companies working in refining and petrochemical fields would start in days the reassessment process; some of them are targeting management structure reform. Other firms plan for selling shares in the Egyptian Exchange (EGX) in mid 2015, Ismail added.

Furthermore, Ismail said his ministry would hold a number of meetings with officials from the National Bank of Egypt (NBE) and Banque Misr (BM) so that one or both the banks would carry out the reassessment  process and choose the firms whose shares would be sold in the EGX. The banks may take over the reassessment process in cooperation with banks and institutions specialized in the initial public offering (IPO) affairs.

Some of the planned IPOs would be issued in US Dollar; while the rest would be in the Egyptian pound, the minister said, clarifying that the number of shares to be offered had not yet been determined, according to the Ahram gate.

Moreover, the minister asserted that the returns from the companies’ anticipated IPOs would be dedicated for financing some projects in oil sector.

He ruled out spending the returns on oil imports or paying off the foreign partners’ dues either.
*This story has been translated and edited by Amwal Al Ghad English