Egypt is preparing to float a minority stake in Helwan Casting Company, in what would mark a first tentative step towards listing an affiliate of the military production apparatus, according to a finance ministry official.
The government is considering offering between 25 and 30% of the company on the stock exchange, the official told Al Manassa, speaking on condition of anonymity. If completed, the sale would be the first involving a subsidiary of the National Authority for Military Production (NAMP) under Egypt’s long-delayed state privatisation programme.
A second government official, however, pushed back against suggestions of a broader opening of military-owned assets, insisting that companies of the Ministry of Military Production are not currently slated for privatisation. Divestments, the official to Al Manassa, remain confined to firms owned by the National Service Projects Organization (NSPO), the military’s commercial arm.
The potential listing comes as Cairo seeks to revive an initial public offering programme covering roughly 30 state-owned enterprises, part of its commitments under an agreement with the International Monetary Fund. Progress has been slow, with repeated delays and shifting timelines.
Helwan Casting has recently undergone a series of legal and administrative changes. A decree published in the Official Gazette on April 23 amended the company’s articles of association, replacing its affiliation from the defunct “United Arab Republic” with the “Arab Republic of Egypt” and dropping its former designation as “Military Factory 9”.
The amendments also recalibrated the chairman’s authorities, including powers of legal representation and contract approval. Officials described the changes as part of a broader effort to modernise outdated governance structures rather than a direct prelude to privatisation.
Behind the scenes, however, preparatory work is under way. The company’s financial statements are being reviewed, assets revalued and internal structures streamlined, according to the finance ministry official, in an effort to enhance its appeal to both domestic and international investors.
The timing of any offering will depend on market conditions, the official added, with the government keen to avoid pricing the asset at a discount amid ongoing economic uncertainty.
External pressures have mounted. In its March 2026 review, the IMF criticised the lack of tangible progress, noting that “no material divestment has occurred over the last 24 months, while new military entities were created”, underscoring persistent concerns about the military’s role in the economy.
Plans to expand the IPO pipeline are continuing, but officials have quietly revised the schedule following heightened regional tensions linked to theUS-Israeli war on Iran. Several planned bank and corporate listings have been deferred to the next fiscal year to mitigate the risk of weak valuations.
Egypt first signalled its intention to bring military-affiliated companies to market in 2022, as part of a broader effort to attract foreign capital and ease pressure on public finances. A 2025 cooperation agreement between the Sovereign Fund of Egypt and the NSPO aimed to restructure selected subsidiaries ahead of potential sales.
Yet many planned IPOs have not yet materialized.The acquisition of Wataniya Petroleum stalled due to incomplete ownership documentation, a source previously told Al Manassa.
Founded in 1956, Helwan Casting manufactures automotive parts, manhole covers, rain drains, railway brake blocks, and industrial equipment. The company claims to be the sole regional producer for several of its specialized casting products.
