ACUD could raise more than EGP 150 bn from its planned EGX IPO

ACUD has a target raise for its planned IPO: The developer of the new administrative capital could raise more than EGP 150 bn when it goes ahead with its anticipated IPO on the EGX, company chairman Khaled Abbas told Asharq Business. Administrative Capital for Urban Development (ACUD), a joint venture between the military and the Housing Ministry, plans to offer 5-10% of its shares on the Egyptian Exchange in a sale that some have speculated could be the largest-ever public share sale in Egypt.

An FX overhang?Abbas told the news outlet that the sale could fetch more than EGP 150 bn “after re-evaluating the company’s assets in light of the currency challenges.” The company is looking to increase its paid-in capital to EGP 77.5 bn from EGP 57 bn, making it the largest in Egypt, and its total assets are expected to reach EGP 300-320 bn by the end of the year from EGP 255 bn in 2022, Abbas said. No formal valuation of ACUD has ever been made public.

Which unit goes public? Abbas floated the possibility of either the parent company or a subsidiary being selected for IPO. The decision about which company to list will be made with the advisors working on the transaction, which ACUD is still in the process of appointing, he said. The company could be ready for listing by 2Q 2024, he added.

Dual listing ahead? If the ACUD itself goes public, it will look at the possibility of a dual listing in a Gulf or international market, Abbas said. “Our brothers in the Gulf have many investments in the [MENA] region and they know the proceeds of [investing in real estate], and they can gauge the future returns,” Abbas said.

More than two years in the making: President Abdel Fattah El Sisi first raised the idea of the ACUD going public in 2021. Abbas last talked up the IPO this past September.

Refresher: Since being established in 2016, ACUD has been in charge of selling the 700 square-km new capital land bank to developers and government bodies, awarding construction and services contracts, and supervising the development of the city. The military owns 51% of ACUD and the Housing Ministry holds the remaining 49%.

TWO NEW COMPANIES UP FOR PRIVATIZATION?

Two Transport Ministry entities up for grabs? The Transport Ministry has nominated its investment arm MOT Investment and Projects and the state-owned shipping firm National Navigation Company (NNC) to be added to the privatization program, Al Mal reported, citing sources it says are familiar with the matter. The Transport Ministry has two other companies that it could later consider adding to the program.

NNC already has an interested buyer: French shipping giant CMA CGM expressed interest in acquiring a stake in NNC in July. The ministry-controlled Holding Company for Maritime and Land Transport owns 56% of NNC, the National Bank of Egypt holds 39.9%, while the remainder is owned by private-sector investors.