Orascom Construction Industries company will come back in Egyptian construction market through a planned IPO, 13 months after it was moved to Hollad. The initial public offer is expected to take place in the fourth quarter of this year (2014) or beginning of next year. This is according to Sawaris who was speaking to investors and analysts.
Orascom Construction Industries is part of a business owned by Nassef Sawaris. The construction business will now be separated from the fertilizers business. The decision for separation has been approved by the Amsterdam-based OCI.
According to OCI, splitting the business will create more value for shareholders and it will now be easier for the two to focus on their growth strategies, separately. Sawiris has also said that the company is set to realize more awards of constriction projects in Egypt, Saudi Arabia and UAE.
Orascom was bought by OCI in a bid that saw its relocation from Egypt. OCI share price has declined in Amsterdam last week. In the first half of this year, the company’s profit declined $39.5 million from $55.9 million a year. This was partly due to a natural gas shortage in Egypt affecting the company’s fertilizer plants. During three months ending in June, the company also recorded a construction backlog growth of $1.1 billion to $5 billion.
