Egypt, EIB start Feasibility Studies on State-owned Food Company’s IPO

Egypt has started feasibility studies, in cooperation with the European Investment Bank (EIB), to list state-run Food Industries Holding Company on Cairo bourse, supply minister Khaled Hanafy told Amwal Al Ghad.

Speaking to Amwal Al Ghad on Sunday, the Egyptian minister said two committees have been formed to study the technical and investment feasibilities on listing the Egyptian state-owned company.

The Egyptian Ministry of Supply is seeking to raise around four billion Egyptian pounds (US$ 524 million) from the FIHC’s initial public offering (IPO), Hanafy noted.

In February, Egypt announced plans to list the state-owned Food Industries Holding Company (FIHC) in a rare IPO of shares in a government holding company.

The capital raised by listing FIHC shares would be invested in underperforming companies operated by the ministry, Hanafy said.

“Food Industries Holding has about 43 subsidiaries. Some of these companies need liquidity in order to increase production lines and develop. That is what we will do with the money raised,” the Egyptian minister said earlier in February.