Egyptian government has picked the newly-founded NI Capital Company as its advisor for a programme aimed to list shares in state-owned companies on the stock market.
Formed earlier in December, NI Capital is part of the state-run National Investment Bank (NIB), tailored for financial consultancies and assets management.
The programme is under the supervision of a committee involving Minister of Investment Dalia Khorshed, Minister of Finance Amr El-Garhy, and central bank deputy Lobna Helal.
"The IPOs programme is part of the country's plan to diversify its investment sources and push growth rates forward by alluring indirect local and foreign investments." Minister Khorshed said.
Egypt is expected to allure around $10 billion in the coming three years, she added.
Some firms operating in the petroleum and banking sectors are on the top of the list in the country's IPO programme, Khorshed stated.
From his part, Ashraf Ghazaly - chief executive of NI Capital - said the IPO programme seeks to raise the Egyptian bourse's capitalisation and encourage local and foreign investors to the market.
NI Capital will study the current status of the firms set to be added to the list, Ghazaly added.
Upon the contract signed with the government, NI Capital will provide its consulting services on two phases. The first named the preparation phase will last for three months and will include making an initial list of suggested firms to be listed on the stock market, in coordination with local and international investment banks.
Earlier this year, Egyptian presidency announced plans to list shares in state-owned bank and companies on the stock market, in a move aimed at jump-starting investment and boosting economic growth.
"The coming period will witness offerings of parts of the capital of successful Egyptian companies and banks on the bourse," said presidential spokesman Alaa Youssef in a statement earlier on January.
© Amwal Alghad 2016
