Abu Dhabi wealth fund ADQ is reportedly close to acquiring a 20-25% stake in Egyptian Linear Alkyl Benzene (Elab), Asharq Business, reports citing three unnamed sources it says have knowledge of the matter. The transaction is expected to be completed before the end of this month, according to the sources.

We knew Elab could be up for a sale soon: Local media previously reported Sovereign Fund of head Ayman Soliman as saying Elab would be the first company to go to market via the SFE’s pre-IPO fund, though Soliman is yet to directly confirm the names of any of the eight companiesrumored to be included in the fund. The aim of the pre-IPO fund is to sell stakes in state-owned companies to strategic investors ahead of potential public offerings on the bourse. Elab is one of the 32 companies up for stake sales as part of the government’s wider privatization program, through which it hopes to raise USD 2 bn by the end of June.

What we don’t know: Information about the value of the potential stake sale and whether ADQ will buy shares from existing shareholders or through a capital increase wasn’t disclosed.

IPO to follow? Elab’s shareholders are expected to debut 10% of the company’s shares on the EGX following the close of the potential sale transaction to ADQ, Asharq quotes one of its sources as saying.

Shareholder structure: National Investment Bank (NIB) owns 34.6% of Elab, Egyptian Petrochemicals Holding Company (ECHEM) and Egyptian Natural Gas Holding Company (EGAS) each own a 21% stake, the Finance Ministry owns 13.1%, Egyptian General Petroleum Corporation (EGPC) owns 10.5%, and Royal Chemicals owns 0.22%, according to Elab’s website.

REMEMBER- We should soon see more movement on the state’s privatization program. Offers could start rolling in this month for military-owned bottled drinks firm Safi and fuel retailer Wataniya, the cabinet said earlier this week, promising details “soon” on other transactions in the works.

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