Egyptian govt may launch IPO of Food Industries

Cairo

EGYPT is considering listing the state-owned Food Industries Holding Company (FIHC) in a rare initial public offering (IPO) of shares in a government holding company, Supplies Minister Khaled Hanafi told Reuters on Sunday.

The IPO could raise between three and four billion Egyptian pounds (S$535-714 million), Mr Hanafi said.

"This listing will be the first of its kind in Egypt . . . the first listing of a state holding company on the capital market. The expected value is three to four billion pounds, that is a personal assessment," Mr Hanafi said. "We are still studying a group of international investment banks to manage and study the listing," he said.

Mr Hanafi did not say how many shares or what percentage of FIHC might be floated. He hoped the IPO would be launched this year, but said the ministry was still looking for an adviser.

Egypt last listed state-owned firms on the stock exchange in 2005, when Telecom Egypt, Sid Kerir Petrochemicals and Alexandria Mineral Oils Company offered shares.

The last IPO on the Egyptian stock exchange was Arab Cement, which was valued at about 700 million Egyptian pounds at its May 2014 launch.

The capital raised by listing FIHC shares would be invested in underperforming companies operated by the ministry, Mr Hanafi said. "Food Industries Holding has about 43 subsidiaries. Some of these companies need liquidity in order to increase production lines and develop. That is what we will do with the money raised," he said. REUTERS