The Egyptian Exchange Rings-the-bell celebrating temporary listing of 4 government companies within offerings program (IPO)
Dr. Hussein Eissa: The offerings program contributes to maximize benefiting from state owned assets and attracting more investments
Eng. Karim Badawy: The offering reflects the strength of the sector companies and the stability of their financial positions, establishing new stage of governance and attracting investments
Dr. Hashem ElSayed: The government offerings plan is not isolated from the global directions, it comes implementing a detailed and studied structural reform program
Dr. Islam Azzam: The companies of petroleum sector joining EGX represents an important added value to the Egyptian financial market
Mr. Omar Radwan: New step towards deepening the financial market and supporting the Egyptian economy
The Egyptian Exchange Rings-the-Bell today, at its smart village premises, celebrating the temporary listing of four state-owned companies within the government offerings program, of which three companies are from the petroleum sector. The companies are: Engineering for the Petroleum and Process Industries - Enppi, The Egyptian Linear Alkyl Benzene Co. ELAB, Petroleum Marine Services Co P.M.S, as well as El MAAMOURA for Construction and Tourism Development Company. This comes within the efforts of the state to implement the government IPO program, enhancing role of the capital market in supporting economic growth.
The celebration marked the participation of: Dr. Hussein Eissa, Deputy Prime Minister for Economic Affairs; Eng. Karim Badawy, Minister of Petroleum and Mineral Resources; Dr. Hashem ElSayed, Assistant to the Prime Minister and CEO of State-Owned Companies Unit; Dr. Islam Azzam, Chairman of The Financial Regulatory Authority; Mr. Omar Radwan, Executive Chairman of the Egyptian Exchange; Mr. Mohamed Sabry, Vice Chairman of the Egyptian Exchange; along with Chairmen and top management of the newly listed companies, representatives of the regulatory organizations, and number of leaders from business and capital market.
The temporary listing included three companies from the petroleum sector which are: - Engineering for the Petroleum and Process Industries — Enppi, with an issued capital of US$357,084,713 distributed over 2,856,677,704 shares, with a par value of US$ 0.125 per share. - Egyptian Linear Alkyl Benzene Co.-ELAB with an issued capital of US$ 210,025,000 distributed over 2,100,250,000 shares, with a par value of US$ 0.10 per share. - Petroleum Marine Services Co —P.M.S. with an issued capital of US$ 120 Million distributed over 12 Million shares, with a par value of US$ 10.00 per share.
- In addition to El MAAMOURA for Construction and Tourism Development Company, subsidiary company to the Holding company for Tourism and Hotels, with an issued capital of EGP 250 Million distributed over 25 Million shares, with a par value of EGP 10.00 per share.
During his speech, EGX CEO emphasized that the temporary listing of these companies represents a significant step towards enhancing the efficiency of the Egyptian capital market. It also reflects the increasing trust in the Egyptian Exchange as a platform providing financing and investment, capable of supporting plans of economic development and accommodating major national companies representing various strategic sectors.
He added that three companies joining the energy and support services sector, in addition to a company joining the tourism and leisure sector, reflects the state’s commitment to diversifying the base of listed companies, contributing to increasing market’s depth, boosting liquidity levels, and providing more diversified investment opportunities for both local and foreign investors.
EGX CEO clarified that this step comes within the integrated vision targeting enhancing contribution of the capital market to financing the national economy, increasing efficiency of resources allocation, and strengthening principles of governance, transparency and disclosure, aligning with the best international practices.
From his side, Dr. Hussein Eissa, emphasized in his speech that this step represents an important milestone in the government’s offerings program implemented by the state as per a clear vision targeting to maximize the returns of the state-owned assets, improving efficiency of the companies and their competitiveness, elevating their management systems, enhancing their ability to expand and grow, and widening participation of the private sector.
He pointed out that listing the companies on EGX contributes to strengthen principles of governance, establish disclosures and transparency rules, and ensure submission of the companies to market surveillance. This supports improving their operational efficiency, maximizing their market value, and improving their returns, besides enhancing investors’ trust.
Eng. Karim Badawy, Minister of Petroleum and Mineral Resources, emphasized that listing shares of three new companies from the petroleum sector on EGX represents the real start of the first phase of the sector’s offerings program. This comes within the government IPOs program targeting to maximize benefiting from the state’s assets, expanding ownership base, and increasing contribution of private sector to the Egyptian economy.
Dr. Hashem ElSayed clarified that the recent procedures witnessed listing of three major companies form the petroleum and mineral resources sector, being the first group from 10 companies the ministry will prepare for offering. In addition to El MAAMOURA for Construction and Tourism Development Company, which is subsidiary company to the Holding company for Tourism and Hotels.
He highlighted that the government offerings program is not isolated from the global directions, as it comes within the implementation of detailed and studied structural reform program. This program is coordinated and agreed-upon through international agreements with each of the European Union, the International Monetary Fund, and the World Bank, which reflects the state is serious in executing radical reform enhancing efficiency of the national economy and supporting the regional investment environment.
Dr. Hashem ElSayed, Assistant to the Prime Minister and CEO of State-Owned Companies Unit, clarified that during the few previous months, we completed the temporary listing of twenty out of thirty companies that we announced within the offerings program. These included companies from the public business sector as well as the petroleum sector, paving the way for their offering and listing on EGX.
Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, pointed out that petroleum companies joining EGX represents an important added value to the Egyptian capital market, contributing to diversify investment sectors. He emphasized that FRA will continue to provide the necessary support to facilitate listing procedures, spread concepts of disclosure, transparency and governance among companies, aligning with the best global practices.
