(Photo from Arabian Cement)
Arabian Cement aims to raise $100m by listing on the Egyptian stock market, according to an official from top MENA investment bank EFG Hermes.
The initial public offerings (IPO) price for Arabian Cement will be announced around next Wednesday, said Karim Awad, chief executive officer at EFG Hermes, Tuesday, on the sidelines of the IPO Egypt conference.
The company has previously stated that it has set an indicative price between EGP8.45 and EGP 9.55. Trading is expected to being around 21 May.
Awad said he was optimistic about Egyptian interest in the Egyptian Stock Exchange. “There have already been several rumors about companies who are taking the first steps towards this process,” he said.
“I am a believer that the Egyptian market has some of the best regulatory frameworks that are available among all Arab markets,” he said, adding that he believe that Arab and foreign investors are comfortable investing in it.
Awad said if the “right opportunities” come by, demand will increase.
“If certain state-owned companies were taken public, they will be a huge catalyst for the market; whether it is to increase its capital or to monetise on the shares,” he said.
A recent wave of IPOs has generated a debate on whether or not this should be used to encourage state-owned companies to privatise. While some believe privatisation can bring about development, others argue that guarantees must be provided to protect workers and avoid past mistakes.
