The head of Egypt’s Financial Regulation Authority (FRA) said on Tuesday he expected the government to start its program of initial public offerings in September.
Two or three companies should be listed by the end of the year, FRA Chairman Mohamed Omran told a news conference.
He pointed out that the country’s first offering of green bonds by a private company is expected to take place on Wednesday with value of $100 million.
Omran did not name the companies expected to issue shares this year or the company due to offer green bonds.
An FRA official and a banking source said the bond offer would be made by Egypt’s Commercial International Bank, Reuters reported.
In April, Public Enterprise Minister Hisham Tawfik said two to three public sector companies will be listed in the IPO in Q3 2021.
Egypt’s government said in March 2018 it would sell stakes in 23 companies, but sold only a 4.5 percent stake in Eastern Tobacco in 2019.
The FRA is Egypt’s Capital Market regulator. It is responsible for regulating non-bank financial services, such as financial leasing, real estate financing and insurance.
While the green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. It was first issued by the World Bank in 2008.
Meanwhile, Azimut Egypt decided to successfully close the IPO, a month ahead of schedule, for its first local equity fund, Azimut Equity Opportunities Fund, “AZ Foras.”
Its focused equity fund, AZ-Opp, has raised assets under management (AUM) of 71 million pounds in its initial subscription period, it stated.
Azimut Group Managing Director Ahmed Abou El Saad said the “fund met substantial appetite from some 500 investors,” noting that it aims to have 250 million pounds in AUM for the fund, which is now trading.
The Group hailed the IPO’s success and the great media coverage.
