Egyptian Prime Minister holds a press conference to review the government's IPO program and increase private sector participation in economic activities.
According to Dr. Mostafa Madbouly, contracts worth a total of $1.9 billion have been signed with the private sector, representing the state's exit from several companies. In the upcoming period, another group of contracts exceeding $1 billion will be announced. The main goal of the state during this stage is to increase private sector presence in various economic activities, paving the way for it to take full leadership in the future. The IPO program has become an Egyptian state program, not related to the crisis, but linked to the policy document of the state, which has been announced and committed to by the state.
The target is to increase dollar revenue by about $70 billion over the next three years, to reach a total revenue of $191 billion by 2026.
In response to several questions during the press conference, Prime Minister Dr. Mostafa Madbouly stated that the government's IPO program is 100% Egyptian and is being implemented in accordance with the state's policy document. Madbouly also noted that the contract with the International Finance Corporation includes the preparation of around 50 new companies to be listed as part of the government's IPO program. The press conference aimed to review the status of the government's IPOs and measures to increase private sector participation in economic activities.
Dr. Hala El-Said, Minister of Planning and Economic Development, reviewed during the global press conference held today at the cabinet headquarters in the New Administrative Capital, the details of the public companies' shares offered to private sector investors over the past months.
The minister reviewed the progress made in the past few months and the government's goals for the upcoming period. She noted that a company with a number of hotels was offered to a group of investors competitively over the past months. The objective was to increase the capital for a minority stake in these hotels. After receiving various offers and negotiations, the award was granted in the form of a 37% capital increase to a consortium consisting of an Egyptian investor and a foreign capital alliance, all from abroad. The winning consortium was Icon Investments, owned by the Talaat Moustafa Group Holding. The capital increase amounted to $700 million, and it aims to improve and develop several hotels. This will positively impact the attraction of tourists, increase the number of visitors, and subsequently increase tourism income, in line with the government's target of reaching 30 million tourists.
The minister also mentioned the second offering, which involved minority stakes ranging from 25% to 30% in three companies previously held in a pre-IPO fund. These companies are Ethydco, Egyptian Drilling Company, and E-Lab. The offering was valued at $800 million and was acquired by Abu Dhabi Developmental Holding Company.
She went on to say that the third offering involved the exit of a private Egyptian sector investor who wanted to acquire the state's remaining 31% stake in El Ezz Al-Dekheila Steel Company, valued at $241 million, of which 60% was in dollars and the remaining 40% in Egyptian pounds. The aim of these expansions is to invest in and localize more industries related to the steel industry.
The minister clarified that these are the three IPOs that have been completed, in addition to the previously announced offerings of BAKRETEH and a portion of the Egyptian Telecommunications Company.
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