Companies to join the pre-IPO fund will be announced soon after COP27, said Ayman Soliman, CEO of the Sovereign Fund of Egypt (TSFE) earlier today.

International and GCC sovereign funds are interested in the companies included prior to the offerings, Soliman added, and that it will be agreed that they will subscribe to increase the capitals of those companies.

The pre-IPO fund aims to prepare state-owned companies for public offerings on the Egyptian Exchange, with the government that it aims to offer shares in these companies during 2022 between a public and secondary offering. Companies in the fund have to be from various sectors, with their inclusion in the fund expected to reach around EGP 6 billion.

The fund’s launch is in line with Egypt’s IPO program, which began in 2019. The program was delayed due to the pandemic, kickstarting once more in 2021 with the public listing of state-owned digital services platform e-finance.

Hala El-Said, Minister of Planning and Economic Development, said earlier that a subsidiary fund of the TSFE was established, through which the shares to be offered to investors through the Governmental Offerings Committee will be prepared. She said in a statement that this sub-fund will have the right to manage the offerings.

Egypt is aiming to double the Sovereign Fund of Egypt’s (TSFE) capital, raising it from EGP 200 billion ($10.1 billion) to EGP 400 billion ($20.3 billion).