Egypt targets IPOs of 20% of more state-run oil firms: minister

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Egypt is exploring a sale of about 20 percent of some state-run oil firms in the coming period, notably petrojet, Ethydco, and MOPCO, Oil Minister Tarek el-Molla said Thursday.

Egyptian government plans to embark on its first sale of shares in a state-owned company in 12 years, aiming to raise up to $150 million from a stock market listing of Engineering for the Petroleum and Process Industries (ENPPI) in the first of a series of public offerings.

Egypt announced Wednesday choosing a consortium led by CI Capital to act as lead managers and bookrunners for ENPPI’s IPO. The consortium also includes Jefferies International Limited and Emirates NBD Capital Limited.

The government’s IPO programme, which will take place over three to five years, will include dozens of state-owned companies in areas such as petroleum, services, chemicals, shipping, maritime and real estate to help boost state finances.

Egypt expects to raise 5-7 billion Egyptian pounds ($276-$387 million) through state-owned company IPOs during the 2017-2018 financial year beginning in July, deputy finance minister Ahmed Kouchouk told Reuters earlier in May.

“The ENPPI IPO is only the beginning of a pipeline of state-run companies to offer minority shares publicly over the next year,” Investment Minister Sahar Nasr said in a statement on Wednesday.

The government will retain majority stakes in these enterprises while helping via the IPOs to increase the size and liquidity of Egypt’s stock market, Nasr added.