Smart Villages Will Hire Financial Adviser for its IPO before year-end

Egypt’s Smart Villages Company decided to go on its plans to launch an initial public offering for some of its shares in local bourse. That is why the company announced ongoing negotiations to hire a financial adviser before the end of this year to assess its IPO.

This comes after Smart Villages announced earlier last June it would delay its IPO plans in the light of the newly-adopted government tax on capital gains. Yet, after conducting further studies, the company decided to start going through the IPO process within the second half of 2014, sources with knowledge of the talks told Amwal Al Ghad on Wednesday.

Selling some of its shares in the Egyptian Exchange (EGX) shall provide Smart Villages with necessary liquidity needed to fund its future expansions and investments.

Earlier this month, Egypt’s President Abdel Fattah al-Sisi passed the law, imposing a 10 percent tax on capital gains and stock dividends.