IMF Mission Chief for Egypt Subir Lall welcomed the Egyptian authorities’ announcement regarding the initial public offerings (IPO) programme for a number of state-owned companies.
On 18 March, Prime Minister Sherif Ismail said that Egypt plans to offer shares of 20 state-owned companies in the next one and half years, 10 of which are already listed on the stock exchange, adding, “the IPOs programme will yield positive results.”
Lall told Daily News Egypt that the decision will help attract equity financing for the companies and will also help expand the Egyptian stock market’s capitalisation.
He added, “we look forward to the implementation of the authorities’ plans over the coming years.”
The state companies’ investments in the stock market stand at 23% and will increase to 45% in the coming three years, Ismail told the media in March.
In January, the IMF staff report for the second review of the Egyptian economy emphasised the importance of boosting the private sector, adding that the IPO programme will help achieve that.