Egypt Temporarily Lists 6 State-Owned Firms On EGX Under IPO Programme

(MENAFN- Daily News Egypt) Egypt has temporarily listed six state-owned companies on the Egyptian Exchange (EGX), a move aimed at accelerating the government's initial public offering (IPO) programme and increasing private sector participation in the economy.

The listings include two subsidiaries of the Chemical Industries Holding Company: El Nahda Industries Company – El Nahda Cement Plant and the Egyptian Company for Pipes and Cement Products- Seigwart. Four subsidiaries of the Metallurgical Industries Holding Company were also listed: the Egyptian Ferroalloys Company, El Nasr Mining, Alexandria for Refractories, and El Nasr Glass and Crystal.

The listing ceremony was attended by Islam Azzam, Chairperson of the Financial Regulatory Authority (FRA), Hashem El-Sayed, Assistant to the Prime Minister and Head of the State-Owned Enterprises Unit, and Mohamed Sabry, Deputy Chairperson of the EGX. The move is intended to deepen the capital market, increase the number of listed entities, and enhance liquidity to attract both local and foreign investors.

“The listing of these companies represents a qualitative step towards enhancing confidence in the securities market,” Azzam said. He added that the move would expand the market's depth and support the growth of market capitalisation.

According to Azzam, the temporary listing serves as a strategic preparatory stage, enabling companies to prepare for public offerings by voluntarily adhering to disclosure and governance rules.

He noted that this phase provides several institutional advantages, including institutional qualification, in terms of preparing companies organisationally to meet listing and trading requirements.

Moreover, this will enable the companies to gain practical experience within the market environment, and allow them to promote to a wider investor base before the official offering, according to Azzam.

He added that this will also assist investment banks in covering subscriptions by improving company readiness.

El-Sayed stated that the move reflects the state's commitment to its divestment programme and the efficient management of assets to achieve the highest possible economic value. He added that his unit is coordinating with relevant authorities to ensure companies meet governance and transparency standards to ensure the best returns for the state.

Sabry described the inclusion of these state entities as a“qualitative addition to the market” due to their diverse sectors and large-scale operations. He emphasised that the exchange continues to develop its infrastructure and trading systems in line with international best practices.

The temporary listing is designed as a transitional step to build an effective disclosure record and enhance operational readiness. This process is expected to bolster investor confidence before the final offerings are launched, supporting the overall objectives of the government's IPO programme.

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