State-owned Holding Company for Chemical Industries will offer 4% of its stake in Eastern Company on the Egyptian Exchange (EGX), Minister of Public Sector Affairs Khaled Badawi said in a statement on Monday. Badawi added that the offering is part of the government’s (initial public offering) IPO programme, aiming to increase state-owned companies’ base of ownership and provide the necessary funding for them to expand their activity and achieve greater corporate governance. Moreover, the minister explained that proceeds from the Eastern Company sale will be used to restructure and develop subsidiaries of the Holding Company for Chemical Industries. Last week, Badawi explained that the government IPO programme will start next month. Earlier in April, IMF Mission Chief for Egypt Subir Lall expressed support for the IPO programme and told Daily News Egypt that the decision will help attract equity financing for the companies and will also help expand the Egyptian stock market’s capitalisation.

Source: Daily News Egypt May 28, 2018 15:45 UTC