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Procedures for IPO of two companies in EGX to begin upon parliament’s approval of government programme: MP - Daily News Egypt

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Procedures for IPO of two companies in EGX to begin upon parliament’s approval of government programme: MP

Business sector did not use legal incentives such as securitisation, financial leasing to overcome liquidity crisis, says Desouky

Minister of Public Sector Affairs Ashraf Al-Sharkawy told parliament members that he intends to start the procedures for an Initial Public Offering (IPO) of two companies in the Egyptian Stock Exchange (EGX) upon parliamentary approval of a government programme, Member of Parliament Mohammed Badawi Desouky said.

These two companies are the Cotton and Textile Industries Holding Company (CTIHC) and the Holding Company for Metallurgical Industries.

Al-Sharkawy discussed his ministry’s plan to develop the public sector affairs over the coming period with the members of the committee assigned to study the economic aspects of the government programme.

“Despite the options the law provided to the public sector to overcome the liquidity crisis, they were not used, thus leading the sector to major losses. These options include financial leasing, securitisation of debts, offering in EGX,” said Desouky.

Securitisation allows companies to overcome their debts by offering debt bonds on the Egyptian Exchange for subscription by institutions, taking into account the executive regulations of the capital market and the prospectus.

Eight holding companies are affiliated to the Ministry of Public Sector Affairs, with 125 companies affiliated to these holding companies.

“The state believes that offering public sector companies to a major investor over the past period was met with wide disapproval from Egyptians, and some companies will be offered in the EGX,” added Desouky.

Prime Minister Sherif Ismail mentioned that the government will offer some public sector companies in the EGX over the coming period, within the framework of the structuring operations carried out by the state to help the sector overcome losses.


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