Investment banks reassess Wataniya, Safi ahead of planned IPOs

Updated 12/5/2024 11:42:00 AM

Arab Finance: Some investment banks are conducting fresh evaluations of the state-run fuel retailer Wataniya and the military-owned National Company for Producing and Bottling Water (Safi) in preparation for initial public offerings (IPOs) on the Egyptian Exchange (EGX) in the first quarter (Q1) of 2025, unnamed sources told Al Arabiya Business.

On December 5^th, Prime Minister Mostafa Madbouly announced that a broader plan to offer companies in sectors including pharmaceuticals and banking will be unveiled next week.

He also confirmed that four to five companies affiliated with the Armed Forces would be listed on the EGX.

The Egyptian government first announced plans to offer shares of Wataniya and Safi two years ago as part of a privatization strategy involving dozens of companies.

This initiative aims to partially or fully exit certain state-owned enterprises through public listings or strategic sales.

Wataniya, founded in 1993, operates a network of fuel stations and markets petroleum products.

Initially partnering with Shell and Mobil, the company began establishing its own branded stations in 2002.

Wataniya currently operates 255 stations, with plans to expand to 300.

Safi, established in 1996 in Siwa Oasis, focuses on bottling natural water, producing olive oil, and processing pickles.

Its facilities include a water bottling plant with an annual capacity of 50 million bottles and an olive oil production line capable of producing 2 tons per hour. The company also operates 24 retail outlets in Greater Cairo.

These offerings are part of a larger program spearheaded by the Sovereign Fund of Egypt (TSFE) in collaboration with the National Service Projects Organization (NSPO) to privatize military-owned assets.

Recent privatization efforts have included the sale of a 30% stake in the United Bank, raising approximately EGP 4.57 billion.