Arabian Cement aims to raise US$100m by listing on the Egyptian stock market, according to an official from top MENA investment bank EFG Hermes. The cement company has previously stated that it has set an indicative share price between EGP8.45 (US$1.20) and EGP9.55 (US$1.36). Trading is expected to begin on 21 May.
Karim Awad, chief executive officer at EFG Hermes, said he was optimistic about the prospects for the listing of other state-owned enterprises on the Egyptian Stock Exchange. "If certain state-owned companies were to become public, they will be a huge catalyst for the market; whether it is to increase its capital or to monetise on the shares," he said.
A recent wave of IPOs has generated a debate on whether or not state-owned companies should be encouraged to privatise. While some believe privatisation can bring about development, others argue that guarantees must be provided to protect workers.