Written by: Badr Ahmed

The Egyptian government announced on Sunday that it has granted preliminary approval to four state-owned companies to list on the Egyptian Stock Exchange, in a new step within the government's offerings program aimed at expanding private sector participation and strengthening state resources, in line with Cairo's commitments under the economic reform program agreed upon with the International Monetary Fund.

The companies that received initial approval included three petroleum sector companies: Engineering for Petroleum and Chemical Industries (ENPPI), the Egyptian Linear Alkyl Benzene Company (ELAB), and the Marine Petroleum Services Company, in addition to Al-Maamoura for Reconstruction and Tourism Development.

Egypt is preparing to list four state-owned companies on the stock exchange as part of its privatization program.

Approval for listing is a preliminary step that precedes offering shares of those companies for trading on the stock exchange, allowing for attracting new investments while the state retains strategic stakes, in accordance with the offerings policy implemented by the government in recent years.

In a separate statement, the Ministry of Petroleum and Mineral Resources explained that the total capital of the three petroleum companies amounts to about $687 million, reflecting the importance of these companies in the energy and petroleum services sector, which represents one of the most prominent economic sectors in the country.

The decision comes as part of the government's plan to offer a number of public companies to local and foreign investors, with the aim of increasing the efficiency of managing state-owned assets, expanding the ownership base, and strengthening the role of the private sector in economic activity.

The Egyptian government had previously announced a plan to offer 30 state-owned companies on the stock exchange or to strategic investors, as part of a program to divest from some economic activities, which is one of the main pillars of the agreement concluded with the International Monetary Fund to obtain a financing package to support the Egyptian economy.

For his part, Minister of Investment and Foreign Trade, Mohamed Farid Saleh, said that the government expects to list four government companies on the stock exchange before May 2027, noting that Egypt has succeeded in achieving, and even exceeding, a number of economic targets agreed upon with the International Monetary Fund, including indicators of fiscal deficit and achieving a primary surplus in the general budget.

The government is banking on the IPO program to attract more foreign investment, increase liquidity in the capital market, and support economic reform efforts in light of the challenges facing the Egyptian economy.