Telecom Egypt IPO set to raise EGBP4.5bn

Friday, Dec 09, 2005

Telecom Egypt's heavily oversubscribed initial public offering is set to raise more than EGBP4.5bn ($782m) in one of the region's biggest listings and the country's biggest sales of a state-owned asset.

The government sold about 20 per cent of the company to individual investors, institutions and Telecom Egypt workers.

The strong demand is being seen as another example of excess liquidity from the booming oil price chasing regional stocks.

The offering values the national monopoly at about $4.6bn based on the price being asked of institutional investors. Retail investors received 153.6m shares at EGBP14.80 each, 128.7m shares went to institutions for EGBP15.56 and a further 17m shares went to employees for EGBP11.84, the company said.

A greenshoe option could raise the cash for the government to more than EGBP5bn.

It is understood that about half of the insitutional demand came from within Egypt.

Another large portion came from the Gulf states, Saudi Arabia and the UAE, with demand from the US and UK as well.

Trading in Cairo, Alexandria and London begins on December 14.

William Wallis in Cairo and Paul Gregan in London