Alamal Alsharif Plastics, the largest producer of plastic pipes in Egypt, is expected to see a change in its ownership structure in the first half of next year, sources close to the company told DNE.
The National Investment Bank (NIB) and the National Bank of Egypt (NBE), which hold 29.5% and 11.34% of the company’s shares respectively, plan to exit the company through a public and a private offering on the Egyptian Exchange. The United Bank, which owns 5.25% of the company, may also sell its stake depending on the outcome of the deal. The Suez Canal Bank has a minor stake of 0.50%, while the rest of the shares are distributed among other shareholders, including foreign investors who own 2.3%.
The sources said that NI Capital, the investment arm of NIB, is in charge of selecting an investment bank to manage the offering, which will involve listing a portion of the company’s shares on the stock market for public subscription, as well as selling about 30% of the company’s shares to a strategic partner through a private placement.
Alamal Alsharif Plastics is one of the leading companies in the plastic industry in Egypt, exporting more than 35% of its products to various African and Arab markets, such as Sudan, Iraq, Yemen, Libya, and Tunisia. The company also works with major brands and projects in Egypt, such as Alstom, Telecom Egypt, Thales International, the Canal Sugar Company project, Talaat Moustafa Holding Group, and Palm Hills.
The company is part of the government’s IPO programme, which aims to offer shares of 32 state-owned companies on the stock market to raise about $5bn in the first half of 2024. The program has already collected about $1.9bn since its launch, according to Hala El-Saهd, Minister of Planning and Economic Development.