Egypt’s sovereign wealth fund begins selling shares of companies ahead of their listing on EGX


Daily News Egypt has learned that Egypt’s Sovereign Wealth Fund pre-IPO fund has started including the assets it plans to offer strategic investors to sell shares of before listing on the Egyptian Stock Exchange (EGX).

The government aims to add assets to the IPO fund worth between $5 billion and $6 billion, according to statements by Planning and Economic Development Minister Hala El-Said.

The sources added that Safi, Watania and three other companies affiliated with the National Services Agency – including the National Food Industries Company – in addition to a number of state-owned companies and the Bank of Cairo were included.

Prime Minister Mostafa Madbouly held a meeting last Monday to follow the restructuring procedures of a number of companies affiliated with the National Service Authority with a view to offering their shares on the stock exchange.

Consequently, El-Said – who is also chairman of the Egyptian Sovereign Wealth Fund – reviewed the steps taken to restructure Watania and Safi with a view to offering their shares on the stock market before the end of this year.

Sources closely linked to the matter expected work to be underway to restructure the two companies with the aim of offering shares to strategic investors, especially as Gulf sovereign wealth funds have shown interest. for both companies, while the government has chosen EFG Hermes as financial adviser. to list the companies affiliated with the National Service.

Ayman Soliman – CEO of the Egyptian Sovereign Wealth Fund – told Daily News Egypt at the end of last June that the pre-IPO fund will provide investment opportunities worth hundreds of millions of dollars for international sovereign wealth funds. , which will benefit Egypt by attracting foreign investment.

Soliman added that the fund is primarily aimed at accelerating certain investments to enter into targeted partnerships through the government offers program to broaden the ownership base, and the fund will allow these investments to enter even in the absence favorable market conditions for carrying out public offers. .

He pointed out that the Sovereign Wealth Fund of Egypt carefully selects strategic investors by setting several conditions to be invited to subscribe to the pre-proposal fund, the first of which is that the strategic investor creates added value for the company under investment, maximize its value and increase the realizable value of the public offering.

He underlined that the fund will work to seize appropriate opportunities in the market in order to complete the offers in the best possible valuation for the companies that will be proposed.


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