The Egyptian Propylene & Polypropylene Company (EPPC) is planning to gather about $300 million when the company will go public in the first quarter of 2018, Karim Saada, country head of Mena Private Equity Firm Amwal Al Khaleej, which owns 15% of EPPC, told Daily News Egypt.
The planned IPO aims to finance EPPC’s expansions in its petrochemicals plant, where Amwal Al Khaleej is seeking to increase the production capacity of its petrochemicals plant to 600k tonnes annually from 290k tonnes between three or four years, he added.
Saada added that, (EPPC) is planning to invest $1 bn in expansion during the first quarter of next year.
The expansion will be funded through a capital increase and debt instruments.
EFG Hermes was tapped as the lead manager for the listing.
The shareholders in EPPC include Egyptian business tycoon Mohamed Farid Khamis, the Egyptian General Petroleum Corporation (EGPC), Amwal AlKhaleej, DISA Ltd., Amwal AlKhaleej, Arab Investment Company, and Oriental Petrochemical Co.
The Egyptian Propylene & Polypropylene Company (EPPC) propylene / polypropylene (PP) complex is located in Port Said in Egypt, about 170km north-east of Cairo.
In January 2007, Egyptian Propylene & Polypropylene Company announced it was to build a propylene / polypropylene (PP) complex in Port Said, Egypt.
The company invested $680m in the complex, which was expected to become operational during late 2009. The commissioning was, however, delayed and the complex began production in the second half of 2010.
