Egypt plans to IPO shares of Siemens power plants: Cabinet – Markets & Enterprises – Business
Egyptian Prime Minister Mostafa Madbouly during a meeting on Wednesday, December 30, 2021 to discuss the latest developments in the country’s plan to IPO certain state-owned companies.
With a capacity of 4,800 megawatts each, the three plants, inaugurated by President Abdel-Fattah El-Sisi in July 2019, were designed to increase the country’s electricity production by 50% in conjunction with 12 wind farms.
As part of a six billion euros ($ 6.7 billion) deal signed in 2015, the German giant built the factories in Egypt, considered at the time to be the largest in the world. In September 2019, Egypt awarded a $ 352 million contract to Siemens and Siemens Technology for the management of the factories.
“The offer is one of the most important projects which is in line with the objectives of the Egyptian state,” said Ayman Soliman, CEO of the Egyptian Sovereign Fund (SWF), adding that it was an incarnation the main objectives of the fund.
These goals include creating partnerships with the private sector to increase the country’s economic growth, Soliman said in a meeting with Prime Minister Mostafa Madbouly yesterday.
The fund also aims to maximize the return on state-owned assets and refinance state investments to ease the burden on the public budget, he added.
The main objectives of the county plan are “to increase foreign investment, attract foreign capital, strengthen the confidence of foreign investors in the investment atmosphere of the country and create investment opportunities in the field. infrastructure and energy production, “Soliman said in a statement. .
Wednesday’s cabinet meeting focused on the latest developments in the country’s plan to list certain state-owned companies on the stock exchange and the latest developments in several sovereign fund investment projects.
The SWF, established in 2018, aims to attract private investment to Egypt and promote co-investment in state-owned assets to maximize their value and efficiency.
In March 2019, Egypt proposed the first state-owned company to be listed on EGX under the IPO program. The company offered 4.5 percent of the shares of tobacco monopoly Eastern Company on EGX, worth a total of EGP £ 1.7 billion ($ 99 million).
On September 8, Planning and Economic Development Minister Hala El-Said said the government should resume the stalled IPO program before the end of 2021.
In October 2021, the Egyptian public payment company e-finance for digital and financial investments made its public debut on Wednesday as part of the IPO program.