(Photo By Mohamed OmarDNE)
The Middle East Oil Refinery company (MIDOR), the Egyptian Company For Refrigeration (Gas Cool) and El-Neel Oil Marketing Company are seeking to list on the Egyptian stock exchange.
The three companies are looking to list with a combined total capital of EGP 8bn.
The Egyptian stock exchange (EGX) stated Tuesday that it is currently coordinating with the three companies in their attempt to list within the upcoming period.
In February, Minister of Petroleum Sherif Ismail held negotiations with the EGX chairman on how oil companies can make use of the EGX’s financial structure. They also discussed ways to provide funds for these companies, without further burdening the state treasury.
On Monday, Minister of Investment Ashraf Salman announced that four new public companies will be listed on the Egyptian stock market “very soon”.
He added that a local bank will be selected to manage the companies’ initial public offering (IPO). Salman pointed out that the selected bank will bring along other investment banks.
In late March, Misr Oil Processing and Fertilizers Company (MOPCO) filed for the official listing request with the Egyptian Exchange, the first public company to list on the capital market in several years. The company’s request came with a capital of EGP 2.3bn.
MIDOR will be listed with a $1.1bn capital, while Gas Cool is aiming to list with EGP 125.5m, Egyptian Exchange highlighted. The listing of El-Neel Oil Marketing Company will be with EGP 50m.
“Listing such companies (public companies) is an important addition to the stock exchange,” EGX Chairman Mohamed Omran said, hoping that other “state-owned companies can join the capital market”.
Omran noted that public companies can rely on the capital market in their future expansion and investment plans.
The Ministry of Supply is also studying the possibility of listing the Food Industries Holding Company (FIHS) on the stock market to improve its financial situation
The minister said the listing will help improve the performance of FIHS’ subsidies and increase its profits, leading to financial and social benefits to the employees.
