Egypt-based Elite Financial Consultancy expects an Initial Public Offering (IPO) of two state-owned companies - National Investment and Reconstruction Co. (NIRCO) and National Asset Management and Investment - for which it is acting as listing sponsor, on the country's  small and medium enterprises exchange, NILEX, in the third quarter of this year, according to Seif Eldin Awni, Elite’s CEO,  to Zawya Arabic.

Background

A listing sponsor is a service provided by firms licensed by Egypt’s Financial Regulatory Authority (FRA). It is aimed at qualifying and restructuring companies seeking to join the exchange through the SMEs market, and helping them comply with the required rules, including disclosure requirements.

Last month, the Egyptian Exchange granted temporary listings to the two state-owned companies: NIRCO, which operates in the purchase, sale, and subdivision of land in addition to leasing real estate; and the National Asset Management and Investment company, which specialises in real estate investment and property asset management, on NILEX.

The temporary listing mechanism was introduced by the FRA in 2022 to facilitate the offering process, requiring companies to begin IPO procedures - or start trading in the case of direct listing - within six months from the date of temporary listing. IPO momentum on both the main and secondary markets of the Egyptian Exchange is picking up as the government moves to list many of its affiliated companies this year.

Elite Financial Consultancy, founded in 2018, operates primarily in Egypt as well as Saudi Arabia and the UAE. It has more than 180 clients and provides services including corporate governance, feasibility studies, independent financial advisory, and restructuring for companies seeking to list on the stock exchange, according to official data.

Details

“The IPO of the two state-owned companies is expected in the third quarter of 2026, as there are still procedures to be completed, such as appointing a financial advisor and an offering promoter, as well as obtaining company valuations from the Financial Regulatory Authority,” Awni said.

He added that the expected offering stake for each company ranges between 10% and 25%.

Click here to read the article in Arabic.