The Egyptian government is revamping its asset monetization and initial public offerings (IPOs) program, prioritizing banks and financial institutions for listing on the stock exchange over the next few years. This move aims to revitalize the market, enhance corporate governance, and contribute to the government’s ambitious non-tax revenue target of EGP 600bn for the current fiscal year (FY) 2024/25.
According to a government document obtained by Daily News Egypt, companies in the energy, transportation, and communications sectors will also be considered for IPOs.
The program is a key pillar of the Finance Ministry’s strategy to achieve its non-tax revenue target. Notably, 50% of the proceeds from the offerings are earmarked for debt repayment to lessen the national debt burden.
Alongside the IPO program, the government plans to establish a digital registry for state-owned assets.
This registry will track the periodic results achieved in implementing the “State Ownership Strategy” managed by the Egyptian Sovereign Fund. The strategy encompasses asset management through offerings on the stock exchange, sales to private investors, or other means.
The document further outlines the government’s intention to include investments from public sector business companies and economic entities within the national target of EGP 1 trillion for public investments. This move aims to leverage the public treasury’s rights related to state-owned assets.
Overall, the program seeks to improve the efficiency and performance of state-owned enterprises and the broader public business sector. It emphasizes tighter control over public funds and accounts to ensure their development and maximize returns on state assets.
This includes adopting sound economic policies, such as pricing strategies that reflect the global cost of providing goods, services, and production inputs.
