Egypt plans to take the first steps early next year toward selling a stake in the state company behind the New Administrative Capital, in what could be the North African nation’s biggest-ever IPO.
The Administrative Capital for Urban Development is a joint venture between the military and the Housing Ministry. The company in charge of the new capital has “very very big assets and a big portfolio of land and projects,” said the company’s head, Ahmed Zaki Abdeen. The offering will take place on the Egyptian Exchange and “very possibly in another international market as well,” Abdeen said.
“We are in the planning stage now and can start the procedures of choosing advisers and deciding the size of the offering early next year,” he said in a phone interview with Bloomberg. “We hope this IPO will be the largest in Egypt’s history.”
President Abdel Fattah El-Sisi said Saturday that the company has EGP 100 billion ($6.4 billion) in liquid assets and as much as EGP 4 trillion in total holdings. Telecom Egypt staged Egypt’s biggest IPO in 2005 when it raised EGP 5.1 billion.
The 700 square-kilometer plot of dessert will be turned into a hub for government buildings, foreign embassies, major companies and featuring Africa’s tallest tower. The government is preparing to move as many as 50,000 employees to the new capital in December. At the same time, it is building a monorail linking the city to Cairo.
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