Egypt to IPO Two Firms for High-speed Rail Project in August

The Egyptian government plans an initial public offering next August for two recently-established for the high-speed rail project, with investments totalling EGP 80 billion ($11.4 billion) Minister of Transport said on Tuesday.

On the sidelines of the Egyptian Exchange’s IPO Summit that kicked off today, Minister Ibrahim El-Demeiri stated that a feasibility study is being conducted by a group of global advisory firms for the prospectus and the share offering.

The government is seeking to expand the ownership base for public projects through floating new projects in the local bourse to capitalize on financing capabilities, the minister said.

Furthermore, El-Demeiri referred that his ministry has completed the establishment of a number of companies affiliated to the National Railway Authority (NRA) to be entrusted with carrying out the project and operating it, notably the Investment Company for Roads and the Railway Company.

Attracting investments and boosting tourism are major aims of the high-speed rail, which will connect five provinces, the northern coastal city of Alexandria on the Mediterranean, Giza, Asyut, Luxor and Aswan in the south, with a speed of 350 km/h.

According to initial studies, the proposed high-speed rail line will be set up over an upper path, a bridge, that will be well isolated on both sides to guarantee highest safety. Five stations will be built in the five provinces where the train will stop. An electrified line will be fixed below the line.

EGX is organizing today its first Summit for the initial public offering. This summit aims at gathering all the decision-makers in the world of business and finance locally and regionally to enhance the growth opportunities for companies by raising capital through the initial public offerings (IPOs).