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Tax breaks on IPO proceeds? A full tax exemption on IPO proceeds is at the top of a package of incentives the government is preparing to boost liquidity on the EGX ahead of the next phase of its privatization program, a government source told EnterpriseAM.
Investment funds + stamp tax: Other measures on the table include expanding exemptions for investment funds and setting out clear rules for how stamp duty will be collected from both buyers and sellers, residents and non-residents alike.
The timeline: A committee that includes the Finance Ministry, the Investment Ministry, the Financial Regulatory Authority, and the EGX is expected to finalize the package before the end of the month. The changes would amend the Investment Law, the Income Tax Law, and Law 30/2023. Once complete, the EGX will begin launching the IPOs, with listings slated to start as early as September, two government sources told us.
Who’s first in line? Banque du Caire and military-owned firms Safi and Wataneya could be among thefirst to debut on the EGX, likely before the end of 1Q FY 2025-2026 and ahead of the IMF’s fifth and sixth reviews of our USD 8 bn program in October, we were told earlier this summer.
Next up: Sources added that food manufacturer Silo Foods, fuel retailer Chill Out, and the National Roads Company could be listed before the end of this year or in 1Q 2026, depending on market conditions. The three companies, alongside Safi and Wataneya, are currently being restructured ahead of their planned listing.
More flows into equities? The government has also been in talks with major state institutions to encourage them to deploy surplus funds into the EGX, sources said. This comes in parallel with a pipeline of larger equity transactions currently under study, the sources said.
REMEMBER- The privatization program is being reworked to focus on minority stake sales viathe EGX, with the government preparing to list 10-40% stakes in several state-owned companies. Strategic sales will remain part of the plan, but on a smaller scale and limited to select industries. The state has also cut its privatization target for the fiscal year, now aiming to raise around USD 3 bn by June, down from a previous goal of USD 5–6 bn.
