Egypt prepares to sell a stake in a state-owned company behind the draft of the New Administrative Capital of the country, and this initial public offering (IPO) is expected to be “the largest in the history” of the nation, he pointed este domingo a Bloomberg el director de The Administrative Capital for Urban Development, Ahmed Zaki Abdeen.
“We are now in the planning stage and early next year we can start the procedures to choose advisers and decide the size of the IPO, “said the senior official.
The Administrative Capital for Urban Development, a joint venture between the Army and the Ministry of Housing created to oversee the project for Egypt’s future capital, has “very, very large assets and a large portfolio of land and projects,” according to Abdeen.
Initial public offering is expected to take place on the Egyptian Stock Exchange and “quite possibly also in another international market”. “We are studying this option,” said the director of the company.
On Saturday, Egypt’s President Abdel Fattah al Sisi declared that the company has $ 6.4 billion in liquid assets and up to $ 5.5 trillion in total holdings.
The New Administrative Capital of Egypt, to the east of the current one, Cairo, is a three-phase project that foresees transform a 700-square-kilometer strip of desert into a modern hub for government buildings, foreign embassies and large companies, and where the tallest tower in Africa will also be built. It is one of several megaprojects launched by Al Sisi since he assumed the presidency in 2014.
According to Abdeen, the government plans to move up to 50,000 employees to the new capital next December, while a monorail linking the city with Cairo is expected to be ready by mid-2022.
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