Egypt’s Giza Spinning delays IPO until Q1-2022 amid coronavirus jitters
Egyptian textiles company Giza Spinning and Weaving is delaying plans for an initial public offering (IPO) until at least the first quarter of 2022 due to financial market uncertainty amid the coronavirus pandemic.
However, the company’s managing director Fadel Marzouk told local press on Monday that it would reassess the timeline again based on market conditions.
Even if vaccine rollouts begin soon, Giza Spinning has opted out of listing during the summer of 2021 as the season is “not a good time for an IPO,” Marzouk said.
He did not confirm the anticipated size or value of the stake sale, but the company had previously said it is looking to put up to 40 percent of its shares on the Egyptian stock exchange (EGX).
The proceeds from the IPO will be used to finance a project worth 250 million Egyptian pounds ($16 million) to expand its yarn and garment production capacities.