Egypt’s state-owned construction firm, Arab Contractors (Osman Ahmed Osman & Company), is considering an initial public offering (IPO) on the Egyptian Exchange (EGX), according to two local banking sources.

A source speaking under the conditions of anonymity told MEED “the company’s IPO is part of the government’s scheme to list shares of state-owned banks and companies, and Arab Contractors is likely to be the first major firm after the government pushes ahead with listing state-owned banks”.

Earlier this month, Egypt’s central bank governor Tarek Amer said the government is also looking to sell shares of two state-owned banks to the public by listing on the EGX.

The government owns large chunks of the country’s economy, including three of its largest banks – National Bank of Egypt, Banque Misr and Banque Du Caire – along with much of the oil industry and vast swathes of real estate. The Central Bank of Egypt owns 99 per cent of United Bank of Egypt and about 50 per cent of the Arab African International Bank, according to UK news agency Reuters.

The last time state-owned companies were listed on the EGX was in 2005, when shares of Telecom Egypt and oil companies Sidi Kerir Petrochemicals and Alexandria Mineral Oils Company (AMOC) were floated.

Last year, three major firms floated on the stock exchange – cake and biscuit maker Edita Food Industries, real estate firm Emaar Misr and contractor Orascom Construction.

Arab Contractors declined to comment on the IPO plans.