Egypt picks banks to handle first state-owned IPO in 12 years

Egypt has picked a consortium led by CI Capital to act as lead managers and bookrunners for a stock market listing of oil company ENPPI, the country’s first initial public offering (IPO) of a state-owned company for 12 years.

The consortium also includes Jefferies International Limited and Emirates NBD Capital Limited, the investment ministry said on Wednesday.

The government is launching an IPO program that will offer shares in dozens of state-owned companies over the next three to five years in areas such as petroleum, services, chemicals, shipping, maritime and real estate to help boost state finances.

Investment Minister Sahar Nasr told Reuters shares in ENPPI would be traded during the fourth quarter of 2017.

Aims to raise $150 mln

Egypt aims to raise up to $150 million from the ENPPI offering, which will be the first in a state-owned company since shares in Telecom Egypt and oil companies Sidi Kerir Petrochemicals and AMOC were floated 12 years ago.

It has said state company IPOs will raise $276 million-$387 million (5-7 billion Egyptian pounds) during the 2017-2018 fiscal year beginning in July.

Egypt’s economy has been struggling to recover since a popular uprising in 2011 drove foreign investors and tourists away, but the government hopes a $12 billion International Monetary Fund lending program signed at the end of last year will put it on the road to recovery.

“The ENPPI IPO is only the beginning of a pipeline of state-run companies to offer minority shares publicly over the next year,” Nasr said in a statement.

The government will retain majority stakes in these enterprises while helping via the IPOs to increase the size and liquidity of Egypt’s stock market, Nasr said.