The Strategist

Egypt starts preparations for the largest IPO in its history

08/16/2021 - 08:36

Head of the Egyptian state company announced plans to begin preparations for an IPO, which could become the largest in the history of the country. The company was created to oversee the construction of Egypt's new capital.

Jerome Bon via flickr
Jerome Bon via flickr
Early next year, Egypt plans to make the first steps towards the sale of a stake in the state-owned company Administrative Capital for Urban Development (ACUD). This is reported by Bloomberg, citing the head of the company, Ahmed Zaki Abdeen.

"We're in the planning stage now and may start the procedures for selecting advisers and determining the size of the offering [of ACUD securities] early next year," Abdeen told the agency. - We hope that this IPO will be the largest in Egypt's history." The offering, according to Abdeen, will be conducted on the Egyptian stock exchange, as well as "very likely on another international market."

ACUD is a joint venture between the Egyptian military and the country's Ministry of Housing, Bloomberg notes. The company was created to oversee a multibillion-dollar project to build Egypt's new capital. It is one of several megaprojects launched by Abdel Fattah el-Sisi, who became Egypt's president in 2014. The project involves transformation of 700 square kilometers of desert into a modern city with government buildings, foreign embassies, large company buildings and Africa's largest tower.  

The largest IPO in Egypt's history so far was held by Telecom Egypt, which raised £5.1 billion in 2015, Bloomberg recalls.