Etisalat Misr, the Egyptian unit of UAE-based telco Etisalat, is reportedly in talks with investment banks about organising an initial public offering (IPO).
Etisalat Misr, 66 per cent owned by the Abu Dhabi firm, has asked banks to make proposals to manage the share sale, Bloomberg reported on Sunday, citing unnamed sources who said the IPO is planned for Cairo and may raise about $500 million.
“There will be some attraction for the company as it will be the first purely Egyptian mobile operator to be listed,” Ahmed Adel, an analyst at HC Securities & Investment in Cairo, told Bloomberg by phone. The mobile business in the country “has seen a significant growth rate over the past three years,” he said.
At $500 million, the sale would be Egypt’s biggest since Citadel Capital raised $605 million in 2009, according to Bloomberg.
Egypt’s financial regulator changed its rules earlier this year to boost trading and attract investment on the country’s bourse, making it easier for companies wishing to list on the stock exchange.
Etisalat Misr reported revenue of LE2.3 billion ($327 million) in the second quarter, an increase of 5 per cent over the same period last year.
Etisalat has operations in 19 countries across the Middle East, Africa and Asia.