Egypt sold a 9.5% stake in state-run Telecom Egypt Co., raising more than 3.7 billion Egyptian pounds ($121 million) in a signal to investors that the country is serious about implementing a sweeping economic reform program.

The government sold 162 million shares in the telecommunications company, representing about a 9.5% stake in the firm, according to a filing to the Egyptian stock exchange. The shares were priced at 23.11 Egyptian pounds each, according to a separate filing. Egypt plans to offer a further 0.5% for company employees to buy.

The offering, which had been discussed in March, represents a key step in the government’s plan to sell state assets in a bid to raise sorely-needed cash. Officials had outlined a list of 32 companies, including several banks and two military-affiliated companies, that were earmarked to be sold. Little progress had been made, raising fears that the country would delay moving ahead with the program.

The push is part of a broader effort to revamp Egypt’s struggling economy, which has seen the currency devalued three times since March 2022 —- a move that helped secure a $3 billion program from the International Monetary Fund.

Bookbuilding for the offering of Telecom Egypt shares, in which the government held an 80% stake, began late last week. Officials marketed the price range of the shares at 22.22 pounds to 27.16 pounds.

Author: Tarek El-Tablawy