The Egyptian government is revamping its asset monetization and initial public offering (IPO) program, prioritizing the listing of banks and financial institutions on stock exchanges in the coming years. The move aims to stimulate the market, strengthen corporate governance and contribute to the government's ambitious non-tax revenue target of 600 billion Egyptian pounds for the current financial year (FY2024/25). There is.
Companies in the energy, transportation and communications sectors will also be considered for an IPO, according to a government document seen by Daily News Egypt.
This program is a key pillar of Treasury's strategy to achieve non-tax revenue targets. Notably, 50% of the proceeds from the offering will be earmarked for debt repayment in order to reduce the national debt burden.
Alongside the IPO program, the government plans to establish a digital registry of state-owned assets.
This register tracks the regular results achieved in the implementation of the “State Ownership Strategy” managed by the Egyptian Government Fund. This strategy may include asset management through offerings on stock exchanges, sales to retail investors, or other means.
The document further outlines the government's intention to include investments from public sector enterprises and economic entities within the national target for public investment of 1 trillion Egyptian pounds. The move is aimed at leveraging the rights of the national treasury related to state-owned assets.
Overall, the program aims to improve the efficiency and performance of state-owned enterprises and the broader public works sector. It emphasizes stricter management of public funds and accounts to ensure their development and maximize the return on state-owned assets.
This includes adopting sound economic policies, such as pricing strategies that reflect the global cost of providing goods, services and production inputs.
