Egypt’s IPO pipeline continues to grow

Cairo accelerates state asset sales under IMF plan, aiming for four major listings by summer 2027.

Egypt, Africa’s second-largest economy after South Africa, plans to list four state-owned companies on the Egyptian Exchange (EGX), the continent’s largest stock exchange by number of listed companies, within the next 12 months.

The June 5 announcement is part of Cairo’s $8 billion International Monetary Fund (IMF) reform program and the government’s State Ownership Policy (SOP).

The planned transaction involves the sale of a 20% stake in state-owned Misr Life Insurance, which is expected to raise approximately 14 billion Egyptian pounds (about $277 million). Hassan Al Khatib, Minister of Investment and Foreign Trade, said the government also expects more than seven public offerings, including those of private sector companies, to reach the market within the next year.

“Over the next 12 months, the priority will be to make it easier for businesses to operate, raise capital and complete mergers and acquisitions,” El Khatib told Reuters during a visit to London.

In October 2024, the government issued shares in United Bank, the first government-owned bank listing in years. Since then, the EGX has approved the provisional listing of six additional state-owned enterprises, including Sinai Manganese Company and El Nasr Housing and Development. Authorities are also preparing about 10 state-owned petroleum companies along with companies from other strategic sectors for future listing.

The drive toward privatization follows reforms initiated in March 2024, when Egypt adopted a flexible exchange-rate regime and allowed the Egyptian pound to float freely, ending the parallel foreign exchange market. In its February review, the IMF said inflation has fallen from a peak of 38% in September 2023 to the low-two-digit range, while Egypt’s net international reserves have risen to about $53 billion, reflecting strong external buffers.

The reform program targets one of the most state-dominated economies in the Middle East and Africa. According to the IMF, the assets of Egypt’s state-owned enterprises are equivalent to almost half of the country’s GDP. The government directly owns or controls more than 300 commercial enterprises in various sectors, including banking, energy, manufacturing, transportation, and telecommunications. SOP came in 2023. Subsequent legislative reforms include Law No. 170 of 2025, which established a central framework for the divestiture of state assets.

Charles Wachira is a contributing writer based in Kenya.

This article appears in the July/August issue of Global Finance Magazine.