The Egyptian government is aiming to increase the valuation of EgyptAlum by three to four times before deciding whether to sell a stake in the state-owned aluminium producer or transfer it to the Sovereign Fund of Egypt (SFE), according to a senior government official.
The official said the decision has been deferred until the company advances a series of expansion projects and secures the necessary approvals, which are expected to enhance its market value. EgyptAlum, listed on the Egyptian Exchange (EGX), currently has a market capitalisation of approximately EGP 118 billion (USD 2.4 billion).
Two options are being considered. The first involves reassessing the company’s fair value before increasing its free float through either a strategic investor or a public offering. According to the official, the government has already received acquisition interest, including one proposal from a Gulf-based company and two from European firms. The second option would transfer EgyptAlum to the Sovereign Fund of Egypt, allowing the state to benefit from future value appreciation before making a final decision.
EgyptAlum has previously been identified for a partial privatisation, with international investors expressing interest in acquiring a stake through a capital increase. The company has also been considered for transfer to the SFE as part of Egypt’s broader strategy to unlock greater value from state-owned assets.