NPC’s EGX Offering: A New Era for Egypt’s Packaging Industry
Updated 7/28/2025 11:03:00 AM
Arab Finance: Egypt’s printing sector is an expanding, vital part of the country’s manufacturing and export economy, supported by rising domestic demand and growing international trade. Valued in the hundreds of millions of US dollars, the printing and packaging market is set for steady growth in the coming years, as estimated by a Statista report. This includes the paper packaging segment, which alone is projected to reach nearly $2 billion by 2025.
Recently, National Printing Company (NPC), a leading player in this sector, marked a significant milestone by offering 10% of its shares on the Egyptian Exchange (EGX).
In an exclusive interview with Arab Finance, Sherif El Moallem, Managing Director of NPC, shares for the first time his remarks on the offering. He discussed NPC's pivotal role in localizing the paper and cardboard industry, its ambitious export expansion plans, and its strategic entry into the EGX.
- What is the current ownership structure of NPC, and how will it be after the offering on EGX?
The current ownership structure includes both Egyptian and Arab investors, with Saudi investor Omran Mohammed Al-Omran as a key shareholder, alongside others like Al Rajhi. NPC aims to offer approximately 21.17 million shares, equivalent to 10% of its total capital of 211.71 million shares, at a maximum price of EGP 28.27 per share. This price reflects the company’s determined fair value.
The offering is split into two tranches:
Private Placement: It involves a maximum of 10.58 million shares, accounting for 50% of the total shares offered and 5% of NPC’s total capital. This tranche is specifically allocated to our designated qualified investor, Omran Mohammed Al-Omran.
Public Offering: It comprises the remaining 10.58 million shares, also representing 50% of the total shares offered and 5% of the company's capital. This portion is earmarked for the general public, including both retail and institutional investors. The subscription period is open from July 27th to 31st, with trading on shares expected to begin in August.
- Why is the offering limited to just 10%, which is relatively small as a free-float when compared to other offerings or listed companies?
This percentage marks our initial entry into the EGX, serving as a starting point to attract new investors. It sets the stage for future steps, including an offering aimed at increasing the company's capital. Through this capital increase, the company seeks to expand its operations, support its future plans, and boost its market growth.
- Some investors will exit with a 10% stake, which is the size of the offering and will not be in the form of a capital increase. What message would you share with new investors to boost their confidence in the offering?
I would tell them that the company possesses significant strengths and is of a substantial size. It boasts a strong network of relationships with major clients.
We currently export approximately 25% of our products abroad. This gives us a robust capacity to generate foreign currency cash flows, which are essential for financing the import of raw materials.
- Do you think NPC's listing on in the secondary market as a representative of the printing sector will attract Arab or foreign investors, or will the stock be primarily driven by local investors?
We welcome all investors and are honored by the participation of Egyptian, Arab, and foreign investors in the company. Currently, 50% of our investors are from Arab countries.
- Can you tell us about the contribution of Saudi investor Omran Mohammed Al-Omran as a key investor in the offering?
Omran Mohammed Al-Omran was initially a partner in our company through Grand Avenue Investment Holdings Corp., with a stake of about 2%. Following the private placement, his share will reach 5%, shifting from an indirect to a direct stake with an increase of 5% over his previous share.
- What are the objectives behind listing NPC’s shares on the EGX, and why do you believe now is the right time for the offering?
We believe this is the right time to offer NPC’s shares on the EGX. One of our core objectives is to be listed on the EGX, offering our partners the flexibility to buy and sell shares as they wish.
In the coming period, we aim to bring in additional partners to help us complete our future initiatives and secure the necessary resources for the company. Naturally, our overarching goal is to grow the company.
- Is NPC planning to increase its capital?
Capital increase is not part of this offering. However, we plan for a capital raise in a subsequent phase. At this stage, we are offering 10% of the company's shares on the EGX.
Our entry into the stock market will contribute to increasing the company's capital easily and quickly, unlike if we were outside the EGX.
- What challenges do you see facing the printing and packaging market in Egypt?
The printing and packaging market in Egypt is very large, but unfortunately, it remains relatively underrecognized. The challenges this sector faces are the same as those currently affecting all companies in Egypt, chief among them are the high interest rates. This affects the printing and packaging sector.
However, this sector attracts significant investments. At NPC, we have tremendous advantages: 80% of our costs are in Egyptian Pounds, and we export 25% of our products abroad. This gives us great strength, most notably that the value of our costs in Egyptian Pounds is substantial and our exports cover the cost of imported raw materials.
- What is your view on localizing the paper industry in Egypt and its benefits?
We have actually succeeded in localizing the paper and cardboard industry through our factory, UniBoard. This factory produces duplex raw material, which used to be imported from abroad.
We have been locally manufacturing these duplex paper raw materials since 2018. This helped us eliminate the need to import them with hard currency, as duplex is the most important product in the packaging industry.
- What are the company's growth plans for the upcoming period?
NPC has a dual and rapid investment plan. The rapid plan focuses on increasing the production capacity of our four subsidiaries. This involves scaling up production capacity at El Shorouk, the paper factory, and the corrugated cardboard factory.
Looking ahead, we are considering investing in additional paper-related companies and projects that we will not announce this time.
We are also highly interested in exporting our products abroad. Currently, exports represent 25% of our output, and we aim to maximize this share over the next five years. We see promising opportunities for exporting our products.
- As a company operating in paper recycling, how committed is NPC to environmental standards?
We are fully committed to environmental standards, which are a top priority across all our companies. We have obtained all the necessary environmental licenses and permits, which confirm our adherence to these standards.
- Finally, what are the company's target export markets in the upcoming period?
We currently export to various African and Arab countries. We also export to European and US markets, planning to expand our reach there in the coming period.
Related News
