Cairo – Mubasher: Egypt is looking to net around EGP 8 billion in proceeds from the government initial public offering (IPO) programme in fiscal year 2019/2020, the Ministry of Finance (MoF) revealed on Monday.

The government plans to offer non-ruling stakes in state-run firms on the Egyptian Exchange (EGX) in a bid to provide an additional financing to companies and the state’s public budget at a value of EGP 8 billion, according to the preliminary financial statement on the general budget draft for FY19/20.

 The IPO programme aims at offering further investment opportunities to the Egyptian securities market, the statement added.

Egypt seeks to float 23 state-run firms on the EGX at a total market value of EGP 80 billion within the framework of the first stage of the government IPO scheme.

The government plans to list these firms within 24 to 30 months with up to EGP 430 billion in market capitalisation.

The IPO programme aims at extending ownership bases, boosting the EGX’s market cap, and raising daily trading volume.

Public business sector minister Hisham Tawfiq previously stated that the second phase of the government IPO scheme would be launched in the fourth quarter of 2019, featuring eight IPOs.