Egypt mulls listing Food Industries Holding on Egypt Bourse

Studies are ongoing to list the state-owned Food Industries Holding Company (FIHC)’s shares on the Egyptian stock market, supply minister Khaled Hanafy announced on Saturday.

Minister Hanafy said FIHC’s Initial Public Offering (IPO) on the Egyptian Exchange (EGX) aimed to boost the company’s capital and improve its financial position.

Egyptian government is targeting for the first time restructuring holding companies that were formed in accordance with Law No. 203/1991, Hanafy noted. The restructuring process can be in forms of listing those companies’ shares on the local bourse so as to increase capitals and allure new local and foreign investments.

During his meeting with EGX chairman Mohamed Omran on Thursday, the Egyptian minister said the IPOs would bolster the performance of the country’s holding food companies.

Food Industries Holding Company (FIHC) is a state-owned company that was established by decision of the Prime Minister in 1983.  FIHC’s has 23 affiliated companies operating in the fields of sugar industry, edible oils, soaps, detergents, feed, starch, yeast, preserved foods, dairy, milling wheat, rice, pasta, paper, timber, grain storage and all strategic commodities in addition to the distribution of food commodities through Al Ahram Markets which is fully owned subsidiary of the Food Industries Holding Company (FIHC).

On 10th April 2014, the Egyptian cabinet approved the transfer of the affiliation of the Food Industries Holding Company (FIHC) from the Ministry of Investment to the Ministry of Supply and Internal Trade.