Egypt to begin temporary listing of 10 oil firms in state IPO push

Egypt will begin procedures to temporarily list 10 petroleum sector companies on the stock exchange as part of efforts to expand private sector participation and accelerate the state’s divestment programme, the prime minister said on Tuesday.

Prime Minister Moustafa Madbouly said the move is part of a broader strategy to implement the state ownership policy and speed up the offering of state-owned companies.

“The government is currently preparing some petroleum sector companies for listing and temporary registration on the Egyptian Exchange (EGX), in a way that helps improve their performance, enhance competitiveness, and attract more investments,” Madbouly said in a statement following a high-level meeting.

Petroleum Minister Karim Badawy said the plan aligns with Egypt’s IPO programme under Vision 2030, calling it “a key implementation tool to empower the private sector and increase its role in economic and development activities, while attracting further investments.”

He said companies are being selected based on strong financial positions and their ability to attract foreign investors, adding that the listings aim to “convert the sector’s recent growth into liquidity to support future project plans.”

Badawy said the listings would allow firms to access a wider range of financing sources, including individual and institutional investors and investment funds, while market trading would provide “a clear and representative indicator of company performance,” supporting potential mergers and acquisitions.

He added that the offerings would help attract institutional capital inflows to support Egypt’s balance of payments, improve governance through stricter disclosure requirements, and reduce reliance on state funding and borrowing.

Hashem El-Sayed, head of the state ownership unit, said the objective is to strengthen governance of state-owned companies through temporary listings followed by fair valuation. “Six companies have already been temporarily listed in recent days, a step that has been widely welcomed in economic circles,” he said.

The meeting agreed to proceed with the temporary listing of 10 companies, with Madbouly directing officials to set a clear timetable for implementation.

Attribution: Amwal Al Ghad English