Egypt expects to raise US$150mn from the IPO of ENPPI

ENPPIEgypt is looking forward to make this IPO programme successful to add value to the country’s economic development. (Image source: DocChewbacca/Flickr)With an aim to raise US$150mn from an initial public offering (IPO), Egyptian government plans to sell 24 per cent stake of the state-owned Engineering for the Petroleum and Process Industries (ENPPI) on the domestic equity market

Privately managed NI Capital, Egypt’s state-owned financial consultancy, will evaluate the fair value of ENPPI before the end of 2017.

Ashraf Ghazaly, CEO of NI Capital, said that it expects to raise between US$100mn-US$150mn from the ENPPI’s IPO.

He also added that the bank will start hiring managers soon to commence on the floating process.

According to Ghazaly, the Egyptian government is also planning to sell stakes of other state-controlled companies in oil and gas, petroleum, chemicals, utilities, shipping, maritime and real estate sectors through this IPO programme, which is aimed to take place in next three to five years.

Ahmed Kouchouk, deputy finance minister of Egypt, added that with the IPO programme, the government expects to raise capital up to US$276mn-US$387mn.

Egypt’s IPO offerings are commissioned as an effort to revive the country’s economy, which is struggling since the 2011 Arab Spring uprisings that drove foreign investors and the international tourists away.

With an aim to attract international investors, Egypt’s central bank has recently reformed bank’s policy by removing the monthly transaction limit of US$100,000 on individual bank transactions.

Ghazaly added, "I'm convinced that the current time is suitable for IPOs to gain investors' confidence in the Egyptian market. The Central Bank's decision to cancel caps on foreign transactions will increase that confidence and help us attract more foreign investors."

The government hoped that the International Monetary Fund’s loan worth US$12mn to Egyptian government in November 2016 will also help gaining confidence of the investors on Egyptian market.

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