The IPO on the EGX may be accompanied “very possibly” by an international IPO, avoiding referencing a specific stock exchange
Egypt could be taking the first steps towards listing its state-owned Administrative Capital for Urban Development (ACUD) company onto the Egyptian Exchange (EGX), in what could be Egypt’s largest initial public offering (IPO) in its history.
Announcing the move during a speech in Badr City, President Abdel Fattah El-Sisi stated that the state plans to list the company at the earliest opportunity, with the company’s current liquid assets amounting to around EGP 100 billion ($6.4 billion), and as much as 4 trillion pounds in total holdings.
A joint venture between the military and the Housing Ministry, the ACUD was established to oversee the government’s multi-billion dollar new administrative city’s development.
According to ACUD head, Ahmed Zaki Abdeen, they have already begun its planning stage, and will begin searching for advisers and deciding the size of the offering early next year.
Abdeen also mentions that the IPO on the EGX may be accompanied “very possibly” by an international IPO, avoiding referencing a specific stock exchange.
Egypt’s current largest IPO in history is state-owned Telecom Egypt, which hit the EGX with 5.1 billion.
The government is preparing to move as many as 50,000 employees to the new capital in December, while a monorail linking the city to Cairo is expected to be ready around the middle of next year, according to Abdeen.
Earlier this year, another state-owned entity, the United Media Services Company (UMS) announced its possible listing on the EGX.
