Egypt targets to list more state-run companies on the Egyptian Stock Exchange (EGX), including a number of the country's Armed Forces affiliated companies during 2022, a cabinet statement said on Tuesday, as part of the country's goal to launch more initial public offerings (IPOs) of public companies.
In a cabinet meeting earlier Tuesday, Prime Minister Mostafa Madbouli said that Egypt seeks to put forward "as many public companies as possible" on the Egyptian bourse during the current year.
Madbouli said he himself will follow up on the plan as the government looks to lure more foreign investments, and also enhance the trust of foreign investors in the Egyptian investment climate, according to a cabinet statement released following the meeting.
The step aims to enhance the role of the stock market, and revive the capital flow and trading in the EGX, in addition to raise the value of market capitalization so as to be more attractive to investors, he asserted.
During the meeting, Ayman Soliman, CEO of Egypt’s Sovereign Wealth Fund (SWF), said that a number of companies affiliated with the Egyptian Armed Forces' National Service Projects Organization (NSPO) will be offered to local and foreign investors in accordance with conditions and regulations that ensure achieving the highest returns for Egypt, according to the cabinet statement.
In October 2019, Egypt's President Abdel-Fattah El-Sisi said the companies owned and operated by the Armed Forces should be listed on the stock exchange.
The SWF, established in 2018, aims to attract private investments to Egypt and promote co-investment in state-owned assets to maximize their value and efficiency.
Source: Al-Ahram Online
