Egypt will float shares in state-owned companies as of June 1 in an effort to boost public assets and attract more local and foreign investors to stimulate the Egyptian stock market. According to a report released by the Finance Ministry on May 15, the first round of the initial public offering (IPO), to run through early next year, will include shares in four to six state-owned companies in the petroleum, manufacturing and petrochemical sectors. The shares have an estimated value of 15-18 billion EGP ($852 million-$1.02 billion), according to the report.

On May 16, Prime Minister Sherif Ismail issued a decree  to form a ministerial committee entrusted with managing the IPO. The committee will consist of the ministers of investment and international cooperation, petroleum, trade and industry, finance, planning and public enterprise.

According to Ismail's directive, published in the Official Gazette, with a reinvigoration of the Egyptian stock exchange, the government hopes to increase capital liquidity, improve the performance of state-owned companies, enhance transparency and governance in dealing with state assets and diversify the state’s sources of income.

In March, the Finance Ministry announced that the first phase of the IPO program aimed at floating shares in 23 state-owned companies over the next 24-30 months with a view toward raising about 80 billion EGP ($4.5 billion). The companies, which have a total market value of 430 billion EGP ($24.4 billion), operate in the petrochemicals, petroleum, banking, building materials and real estate sectors. The enterprises will sell 15%-30% of shares, according to the Finance Ministry statement.