The Chemical Industries Holding Co. (CIHC), headquartered in Egypt, has successfully concluded the sale of a 30 percent stake in its state-owned tobacco manufacturing subsidiary, Eastern Co. Valued at 16.4 billion Egyptian pounds ($530 million), the transaction involved the sale of approximately 669 million shares on the Egyptian Exchange (EGX) to Global Investment Holding, an investment firm based in the UAE. This move is part of Egypt's broader privatization program, where the government aims to sell stakes in thirty-five state-owned companies through offerings on the EGX and to strategic investors. The privatization program has already raised $5 billion, with additional deals totaling around $5 billion in progress.
The sale of the Eastern Co stake represents a significant step in Egypt's efforts to generate revenue through its initial public offering (IPO) program, with expectations to raise up to 70 billion $2.3 billion in the Financial Year 2023/2024. The government is actively implementing a well-defined IPO program, aiming to take thirty-five companies public or sell stakes to strategic investors by the first half of 2024.