The Egyptian government has sold a 10% stake in Telecom Egypt (ETEL) for nearly EGP 3.95 billion, Asharq Business reported on May 12th, citing unnamed sources familiar with the transaction.
The government sold more than 170.7 million shares at a price of EGP 23.11 per share, with the offering being subscribed by less than 2.5x, one of the sources said.
Large portion of the stake was purchased by local investors, while Arab and foreign investors just acquired a limited number of the offered shares.
Telecom Egypt represents the long-awaited first step in the government’s initial public offerings (IPO) program.
Prior to the transaction, Telecom Egypt was 80%-owned by the government, while the remaining 20% of the company’s shares are being traded on the Egyptian Exchange (EGX).