Under mounting pressure to fulfill its promises to the International Monetary Fund, the Egyptian government is accelerating its divestment program, aiming to offer shares in eight state-owned companies on the Egyptian Exchange (EGX) within the next two months.
The move is part of a broader, long-delayed plan to list 20 state-owned enterprises (SOEs) in the capital market, according to Hashem El-Sayed, head of the State-Owned Companies Unit and assistant to the Prime Minister, in an exclusive statement to Al Manassa.
The EGX announced on Thursday the “temporary listing” of six state firms, a regulatory precursor to offering stakes to the public. This follows a similar announcement by the Financial Regulatory Authority (FRA) regarding six other entities just days ago.
The rush to market comes as Cairo faces scrutiny over the slow pace of its privatization agenda. In a report published in late March, the IMF noted a lack of “substantial exits” over the past 24 months, highlighting a contradiction in the government’s policy. while civilian state assets remain on the auction block, new subsidiaries under the military’s umbrella continue to be established.
El-Sayed explained that the unit pushed the deadline for listing all 20 companies to the end of June 2025, moving it from the original March target. The delay was attributed to the completion of “fair value” reports and other regulatory requirements.
The Bank of Cairo saga
Central to this new wave of offerings is the long-embattled Bank of Cairo. Investment and Foreign Trade Minister Mohamed Farid indicated in television remarks this week that the government is pivoting toward a public listing rather than a private sale to regional Gulf investors.
The bank has been a symbol of Egypt’s stalled privatization efforts; despite its 10.25 billion shares being registered on the exchange since 2017, an actual IPO has never materialized. In June 2025, high-stakes negotiations for a full acquisition by Emirates NBD collapsed over a $300 million valuation gap. The Emirati bank offered $1.5 billion, while Cairo held out for $1.8 billion.
Farid also signaled to Al Manassa that the upcoming offerings would include a 20% stake in Misr Life Insurance. The government expects that deal to raise 14 billion Egyptian pounds (approx. $290 million), potentially marking the largest offering in the history of the Egyptian capital market.
Clearing the pipeline
According to El-Sayed, the unit has already processed 12 companies through two preliminary phases this month. The first batch included industrial and mining players: El Nasr Mining, SIGWART, Nahda Industries, Alexandria Refractories, Egyptian Ferroalloys, and El Nasr Glass and Crystal.
The second batch comprised a more diverse portfolio: NERCO, El Nasr Housing and Development, Sinai Manganese, El Abd Construction, the National Company for Asset Management and Investment, and the Springs and Transport Equipment Manufacturing Company.
The FRA described the “temporary listing” phase as a transitional step designed to help these state entities build a track record of financial disclosure and operational readiness. By fostering investor confidence before the final bell rings, the government hopes to ensure the success of a program that has historically struggled with timing and market sentiment.
Currently, the EGX hosts 265 listed companies. Despite the economic headwinds facing the country, the main index posted a significant 41% annual gain last year, providing a tempting, if volatile, window for the government’s exit strategy.
