Home » Egypt targets $5 billion in state IPOs by mid-2024

Egypt targets $5 billion in state IPOs by mid-2024

by Admin

In an ambitious bid to boost its financial standing, the Egyptian government is poised to secure $5 billion through the initial public offerings (IPOs) of state-owned enterprises and power plants. The initiative, set to run from October 2023 through June 2024, is part of a broader economic strategy outlined in a recent report by the Cabinet’s Information and Decision Support Center (IDSC).

Egypt targets $5 billion in state IPOs by mid-2024

Among the entities designated for the IPO offering are key players in Egypt’s burgeoning energy sector. These include the Siemens Beni Suef power plant and the Gabal El-Zeit and Zafarana wind power plants. Also on the list are Safi and Watanya, firms overseen by the Egyptian military, indicating the government’s aim to diversify its revenue streams through strategic sell-offs.

Building on prior successes, the government disclosed that it has already raked in $5 billion from the sale of stakes in 13 companies between March 2022 and July 2023. This shows the IPO program’s traction and marks a notable accomplishment in Egypt’s efforts to modernize its state assets and drive economic growth.

The broader plan will see stakes in 35 state-owned enterprises offered to strategic investors by June 2024, in line with the State Ownership Policy Document. In February of this year, an initial list of 32 companies was unveiled, with three more — Eastern Company, Al Ezz Dekhila, and Telecom Egypt — being added more recently.

Under President Abdel Fattah el-Sisi, Egypt has experienced significant economic growth, credited largely to bold reforms and strategic economic policies. The president has particularly focused on bolstering Egypt’s infrastructure, enhancing energy security, and streamlining bureaucracy to attract foreign investment — efforts which have played a pivotal role in making projects like this state IPO program viable.

You may also like

© 2022 Lebanon Wire | All Rights Reserved