Egypt’s Prime Minister, Mostafa Madbouly, has unveiled an ambitious plan to propel the nation’s economic landscape by listing 11 state-owned enterprises on the stock market by 2025. This strategic movement is a part of Egypt’s expansive Initial Public Offering (IPO) program, designed to optimize state assets and foster economic growth. Among the companies set for public offering are Misr Pharmaceutical Industries, Gabal El-Zeit Wind Station, Wataniya Company, Safi Company, and Silo Food Company.
During a recent press conference, Madbouly indicated that Wataniya and Safi are slated for listing by the middle of next year. Furthermore, shares in Alexandria Bank and Banque du Caire will also be included in the upcoming market entries. The Prime Minister stressed that these offerings might occur through strategic partnerships or public listings on the Egyptian Stock Exchange, catering to both domestic and international investors.
This announcement follows United Bank’s successful IPO in December, where 330 million shares, equivalent to 30% of its issued capital, were offered at EGP 13.85 per share. The sale generated a substantial EGP 4.57 billion, marking a significant achievement in Egypt’s asset divestment strategy.
Egypt’s IPO initiative aligns with a broader economic reform agenda, targeting sectors like banking, energy, and real estate. This move is expected to invigorate the national economy by unlocking the potential of state assets while attracting foreign investments. According to the World Bank, Egypt’s economic growth is projected to reach 4% in the upcoming fiscal year, bolstered by these strategic offerings (World Bank, 2023).
In November, Madbouly led a meeting of the Economic Ministerial Group, focusing on enhancing Egypt’s economic resilience and stability through its IPO program. Cabinet Spokesman revealed that preparations are underway for additional listings, with an additional 15 companies expected to join the program soon, reflecting the government’s commitment to economic reform and market liberalization.
Economic analysts, like Dr. Hisham Barakat of Cairo University, view this IPO drive as a critical step in modernizing Egypt’s economy. “By divesting state assets, Egypt is not only raising capital but also increasing market efficiency and transparency, which are crucial for attracting foreign investment,” he noted in a recent interview.
These measures underscore Egypt’s resolve to transform its economic framework, signaling a promising future for investors and stakeholders alike. As the nation gears up for these monumental changes, the focus remains on sustainable growth and long-term economic prosperity.
