Mostafa Madbouly, the Prime Minister of Egypt, has stated that as part of a bigger plan to increase revenue for the cash-strapped nation, the administration intends to IPO at least 20 state-owned businesses in 2023.
Some businesses would sell their most significant shares to strategic investors rather than listing on the EGX (the Egyptian stock exchange). In a news conference conducted after the cabinet meeting, Mostafa Madbouly stated that these investors are anticipated to restructure state-owned businesses, raise additional capital, and create more job possibilities.
PM Mostafa Madbouly said, “The goal is to involve more people in the development process, including the private sector, and to have them run and own shares of government-owned companies. This is our strategic objective.”
One of the main requirements imposed by the International Monetary Fund (IMF) for approving a USD 3 billion loan to Egypt was to reduce the role of the government in the economy and to strengthen the private sector.
PM Mostafa Madbouly stated that his cabinet was working round-the-clock to complete the list of businesses anticipated to be floated and that a thorough strategy would be unveiled the following week.
However, several government-owned businesses anticipated to go public were mentioned in the EGX annual report released last month. These companies include Alex Bank, Misr Insurance, ENPPI, Egyptian Drilling Company, Assiut Oil Refining Company, Middle East Oil Refinery Company, The Egyptian Ethylene & Derivatives Company, Banque du Caire, Misr Life Insurance, and ELAB.
Listed state-owned businesses that are anticipated to hold additional initial public offerings (IPOs) were also mentioned in the same report. These businesses included Alexandria Mineral Oils, Housing and Development Bank, eFinance, Madinat Nasr for Housing and Development, Heliopolis Company for Housing and Development, Egyptalum, Sidi Kerir Petrochemicals Company, Abu Qir Fertilizers and Chemicals Industries Company, Alexandria Container and Cargo Handling Company.