FACTBOX: 32 firms under Egypt state share sale programme
Egypt has announced on Wednesday its share sale programme, which will involve selling stakes in 32 state-owned companies by the end of March 2024.
Egyptian Prime Minister Moustafa Madbouly said in a statement the state would offer shares in the companies to strategic investors, through offerings on the local stock exchange (EGX) over the next 13 months. He dusted off plans that have largely lain dormant for years as the war in Ukraine triggered heavy foreign investment outflows from Egyptian financial markets, throwing the economy into distress.
The programme is part of the country’s new state ownership policy which outlines the government’s plans to more than double the private sector’s role in the economy to 65 percent and attract $40 billion in private investment by 2026.
The government wants to reduce its involvement in a number of sectors via public share offerings, stake sales to strategic investors, and more vivid public-private partnerships.
Among the planned sales are stakes in three major banks in the country; Banque du Caire, the United Bank, and Arab African International Bank (AAIB).
Madbouly further said that the share sale process will begin during the current quarter and continue through to the end of first quarter of 2024, adding that the government aims to complete at least 25 percent of the share sales within the first six months of the programme.
More companies may be added to the list over the next year, the prime minister noted.
“The offerings include a number of companies either to widen the participation of Egyptian citizens in public ownership or to bring in strategic investors,” Madbouly stated.
Moreover, the plan will also include selling shares in two insurance firms; Misr Life Insurance and Misr Insurance.
Oil and petrochemicals sectors are also on the list. The government will sell shares in the Egyptian Ethylene and Derivatives Company (Ethydco), Egyptian Linear Alkyl Benzene (Elab), Helwan Fertilizers Company, Chemical Industries Development Company (CID), the Egyptian Polypropylene and Polypropylene Company (EPP), the Egyptian Drilling Company (EDC), and Pachin.
Other industrial and manufacturing firms have also made it to the list; namely Misr Concrete Development Company, Sinai Manganese Company, El Nasr Mining, and the Egyptian Ferrous Alloys Company.
Plastic producer Alamal Alsharif Plastics and pharma player Misr Pharma are also among those tapped in the list.
Two military-owned firms, bottled drinks firm Safi and fuel retailer Wataniya are also included in the share sale programme. They were recently added to a pre-IPO fund managed by the Sovereign Fund of Egypt (SFE), which is responsible for restructuring the companies ahead of a share sale.
Four state-owned real estate firms are also in; namely El Nasr Housing and Development, Maadi for Development and Construction, El Mostakbal for Urban Development, as well as Salhia Investment and Development Co. In addition, a number of state-owned hotels will be merged into a single holding company ahead of a sale.
Two ports firms have been also chosen under the programme; namely Port Said Container and Cargo Handling Co. (PSCCHC) and Damietta Container and Cargo Handling Co (DCHC). The Suez Canal Authority’s Canal Company for Mooring and Lights is also included in the list.
A tech firm has also made it to the list; Misr Technology Services (MTS), which will be put up for sale to investors.
The plan will also see offering some of state-owned assets, including two of the country’s largest wind farm projects: the 580-MW facility in Gebel El Zeit and the 545-MW facility in Zafarana. The Siemens-built, 4.8 GW combined-cycle power plant in Beni Suef is also on the list, after being added to the SFE’s pre-IPO fund months earlier.
| 1. Banque du Caire |
| 2. The United Bank |
| 3. The Arab African International Bank (AAIB) |
| 4. Misr Life Insurance |
| 5. Misr Insurance |
| 6. Egyptian Ethylene and Derivatives Company (Ethydco) |
| 7. Egyptian Linear Alkyl Benzene (Elab) |
| 8. Helwan Fertilizers Company |
| 9. Chemical Industries Development Company (CID) |
| 10. Egyptian Polypropylene and Polypropylene Company (EPP) |
| 11. Egyptian Drilling Company (EDC) |
| 12. Pachin |
| 13. Misr Concrete Development Company |
| 14. Sinai Manganese Company |
| 15. El Nasr Mining |
| 16. Egyptian Ferrous Alloys Company |
| 17. Alamal Alsharif Plastics |
| 18. Misr Pharma |
| 19. Safi |
| 20.Wataniya |
| 21. El Nasr Housing and Development |
| 22. Maadi for Development and Construction |
| 23. El Mostakbal for Urban Development |
| 24. Salhia Investment and Development Co. |
| 25. Port Said Container and Cargo Handling Co. (PSCCHC) |
| 26. Damietta Container and Cargo Handling Co (DCHC) |
| 27. Canal Company for Mooring and Lights |
| 28. Misr Technology Services (MTS) |
| 29. A number of state-owned hotels |
| 30. Gebel El Zeit Wind Farm Complex |
| 31. Zafarana Wind Farm |
| 32. Beni Suef Power Plant |
