Egypt taps on IFC to advise on IPO program

Egypt signed Sunday a five-year agreement with the International Finance Corporation (IFC) to advise on its Initial Public Offering (IPO) program under which dozens of state-run companies will be listed on the stock market.
The World Bank’s for the Empowerment of the Private Sector will act as a strategic advisor to the government for the implementation of the government’s draft program, the Egyptian government said in a statement.
The agreement was signed by Dr. Rania Al-Mashat, Minister of International Cooperation, Governor of Egypt at the World Bank Group, and Mr. Mokhtar Diub, the Associate Member of the IFC.
Per agreement, IFC provides technical support and advice to the government’s thesis program, assists in the structure and preparation of companies targeted for the private sector, improves corporate governance, boosts capital flows and supports the country’s vision for economic recovery.
“This agreement is expected to produce a number of objectives, including expanding private sector participation in the economy, leading to more job opportunities, increase competitiveness, as well as improve governance in companies targeting them to the private sector, and support the recovery of the Egyptian economy led by the private sector through the effective implementation of the program, encourage growth and investment in various sectors such as infrastructure, tourism, healthcare, education, agriculture and transformative industries”, the statement explained.
Egypt has been in economic and financial distress as a result of the pandemic. The country has turned to foreign lenders and investors. The North African country is planning to float several state-run companies in view of luring more investments.