Firms line up to quarterback the state’s IPO program

Good morning, friends. We’ve got a packed issue for you today. We are leading this morning with a cross-border M&A and more good news, including the Suez Canal Economic Zone’s ability to lure in Turkish textile giants and Chinese logistics heavyweights.

In other good news: The State-Owned Enterprises Unit is reportedly courting pitches from local investment banks to quarterback its upcoming IPO pipeline.

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The IPO scrimmage line

Investment bankers are lining up to quarterback the state’s upcoming IPO program. EFG Hermes, CI Capital, Al Ahly Pharos, and Arqaam Capital have reportedly all submitted bids to the State-Owned Enterprises Unit, an unnamed government official told the Arabic press. This interest comes as the state looks to expand its temporary listing pipeline to 30 companies across various sectors before the fiscal year ends in June to keep the IMF onside.

REFRESHER- The government has so far been padding the IPO tape with temporary listings — most recently, El Nasr Housing and Development, Sinai Manganese, and Spring and Transport Equipment Manufacturing earlier this week. These are essentially administrative filings that get companies onto the EGX to satisfy IMF requirements before the real float.

Phase 4 execution of the program stalled at 7.5% — only USD 142 mn of a USD 1.9 bn target. This lull is expected to give way to an uptick in activity in 2H 2026. “Most likely in the second half of this year, we will be back to the IPO momentum. Hopefully, starting with Banque du Caire, which is already [temporarily] listed,” Hany Genena, head of research at Al Ahly Pharos, tells EnterpriseAM.

BdC met strong investor appetite in an early look roadshow before the start of the war in the Gulf, with potential cornerstone investors from the Gulf, London, and New York all expressing strong interest in the story.

Bills, bills, and bills

The Central Bank of Egypt (CBE) tapped its USD-denominated T-bill program yesterday, selling USD 934 mn in 364-day paper at an average yield of 4.0%, according to its website. The new issuance is likely to refinance a USD 985 mn tranche due today. It was priced at an average yield of 4.25% when it was originally auctioned a year ago.

REMEMBER- Back in February — prior to regional tensions — the CBE squeezed borrowing costs down to 3.5% on its 364-day USD paper. That was a big W compared with the 4.25% it was paying the year before. Yesterday’s sale kept that streak alive, albeit at a higher rate.

A play on the Med

The government is moving to build a USD 600 mn integrated petroleum logistics zone at Alexandria Port, a government source tells the Arabic press. The first phase will cover some 300k sqm and include a 900-meter marine berth as part of a wider Greater Alexandria Port development.

What’s next: The Transport and Oil Ministries are still wrapping up contracts, including the usufruct fee payable to the Alexandria Port Authority and a financing structure that blends foreign and local currencies. Full details — including partners and equity splits — are expected to be announced soon.

The Red Sea is already in play: Alongside efforts to rent our warehouses on the Red Sea for crude oil and refined products to AD Ports, we have offered 10 crude and petroleum storage facilities for lease on the east coast to attract oil deliveries from Saudi Arabia, Kuwait, Iraq, and Qatar.

BACKGROUND- We have around 29 mn barrels of spare storage across our main ports — a figure that positions Egypt as a viable option for traders looking for optionality and a strategic location. The country operates 19 commercial ports, 14 under development, and nearly 79 petroleum storage facilities built or upgraded in recent years.

A logistics link with Russia?

The Transport Ministry is mulling a logistics corridor with Russia, connecting container terminals and industrial zones on the Red Sea and the Mediterranean to Russian Black Sea ports and the Northern Sea Route. This emerged during a meeting between the Transport Ministry and Russia’s Maritime Board, which saw the two sides ink an MoU to boost cooperation in the maritime transport sector and localize shipbuilding in Egypt.

Why it matters: A link between the two nations would provide the infrastructure needed to realize Russian President Vladimir Putin’s proposed grain and energy hub in Egypt. The project would position Egypt as a key logistics and storage center for Russian exports to Africa and the Middle East.

PSA

WEATHER- It’s a bit warmer in Cairo today, though still a breezy spring day, with a high of 29°C and a low of 17°C, according to our favorite weather app.

It’s several degrees cooler in Alexandria, with a high of 24°C and a low of 14°C.

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The big story abroad

It is a pretty quiet morning on the global front pages, with the latest on the US-Iran negotiations getting top billing.

Where do the peace talks stand? It is unlikely that we’ll see any progress in the talks between the US and Iran anytime soon. US President Donald Trump is reportedly dissatisfied with Iran’s latest proposal, which calls for an end to the US naval blockade, deferring discussions regarding Iran’s nuclear program until after the war is over.

We’ll be waiting to hear from Trump after the White House Press Secretary toldreporters that he will address the matter very soon.

AND- It’s day one of what could be Jerome Powell’s final Fed meeting as Chair. The central bank is widely expected to keep rates unchanged as it looks to limit the impact of the regional war and higher energy prices. It’s a big week for monetary policy, with the central banks of the UK, EU, and Japan set to make rate decisions in the coming days.

Meanwhile, in the world of finance: The value of the fund finance market has balloonedbeyond USD 1 tn, according to a Moody’s Ratings report. The industry is surging as private credit funds multiply and a dealmaking slump forces private equity firms to seek frequent injections of banknotes.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We’re exploring Egypt’s potential to pivot from a lithium importer to an energy storage pioneer, leveraging homegrown salt-based batteries to accelerate our renewable buildout.