Egypt offloads 4.9% stake in state-owned cargo company: Damietta Container and Cargo Handling Company (DCHC) sold EGP 513.6 mn worth of shares to Commercial International Bank (CIB) — equivalent to a 4.9% stake — through the block trade mechanism, according to a bulletin (pdf) on EGX and Asharq Business. The government is reportedly looking to offer a 20-25% stake in the company through the bourse.

IN CONTEXT- The Egyptian government is moving towards offering minority stakes in state-owned companies listed in its privatization program via the Egyptian Exchange (EGX), while reducing the number of stakes allocated to strategic investors, a government source told EnterpriseAM.

Stake sales to strategic investors will still be part of the plan — albeit a smaller part — with select agreements limited to investors in specific industries, we were told. Earlier reports suggested that the government was eyeing a private placement tranche for DCHC to attract major companies like Abu Dhabi Ports and DP World.

ICYMI- DCHC filed for a capital hike last February, requesting to raise its authorized capital to EGP 1.5 bn, up from EGP 400 mn, and increase its issued and paid-up capital to EGP 1.1 bn, up from EGP 200 mn.

The gov’t eyed other roads + ports operators for public offering: Port Said Container and Cargo Handling Company was also included in the government’s list of 32 state-owned companies slated for privatization, with Egypt’s Financial Regulatory Authority reportedly reviewing the company’s fair value assessment in 2023. A stake in the military-owned National Roads Company could also be up for sale by 2026 as part of the privatization program.

The state has also roughly halved its privatization targets for the fiscal year, with the government now planning to raise some USD 3 bn under its privatization program by the end of June, down from its previous USD 5-6 bn target, we were told.

ALSO IN THE PIPELINE-

  • Saudi Global Ports (SGP) reportedly tapped banks in December, including Goldman Sachs and HSBC, to arrange an upcoming IPO;
  • Saudi e-commerce platform Salla raised USD 130 mn in a pre-IPO investment round led by Bahrain-based Investcorp and others. Salla is yet to announce a timeline;
  • Israel’s Ashdod Port Company plans to float up to 49%, and has published a tender to select an IPO adviser in January;
  • The Egyptian gov’t is planning on selling a stake in the military-owned National Roads Company in 2026, as part of the government’s privatization program;
  • There’s still no finalized date for Etihad Airways’ IPO, but sources recently said the company could go ahead with its planned USD 1 bn IPO on the ADX by early 2026 ;
  • Malaysia’s largest port operator MMC Port Holdings filed a draft prospectus for its IPO with Malaysia’s securities regulator back in July. The IPO — possibly Malaysia’s largest in over a decade, with projected USD 1.3 issuance — is expected to move forward between 2H 2025 and 2026;
  • E-commerce and B2B firm Silq Group — the result of a recent merger between Saudi e-commerce platform Sary and Bangladesh’s ShopUp — is eying an IPO in 2027;
  • Adnoc is reportedly weighing an IPO for its recently set up USD 80 bn low-carbon and chemicals arm XRG on an international exchange. Any future floatation will take effect in five-odd years, Reuters reported in May, citing an unnamed source.
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