Regional institutional funds account for almost 85% of Eastern Company private placement: source

Daily News Egypt
2 Min Read

On Friday, Egypt’s Public Enterprise Sector Minister Hisham Tawfik announced the resumption of a programme to sell stakes in state-owned Egyptian companies by offering 4.5% of shares of Eastern Tobacco Company on the Egyptian Exchange (EGX).

“The private placement has been snatched by Arab and institutional investors, who accounted for almost 85% of the shares offered, while foreign investors acquired the other stake,” a senior company source told Daily News Egypt.

The public offering of the company will begin on Sunday 3 March, and end on 5 March, the minister added. Tawfik stated that the private placement accounted for 95% of the total offered shares.

The Chemical Industries Holding Company announced the offering of 4.5% of the shares of Eastern Tobacco to the stock market, with 95% in a private offering, and 5% for public offering.

The minister confirmed that the IPO will take place from Sunday to Tuesday.

The first stage of the programme was announced in March 2018 with the aim of strengthening the Egyptian capital market and attracting more liquidity to the EGX.

However, it was postponed in October 2018 due to the emerging markets crisis and global market volatility.

The programme will also see shares offered in Alexandria Container and Cargo Handling Company, Abu Qir Fertilisers and Chemicals Industries Company, and Heliopolis Company For Housing and Development.

The government announced in September 2018 that it is working on a programme to offer shares of dozens of its companies over the next three to five years in sectors such as oil, services, chemicals, shipping, marine services and real estate, to help support the state’s public finances.

The last public offering of state-owned companies was in 2005 when shares of Telecom Egypt, AMOC and Sidi Kerir Petrochemicals Company were sold.

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