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Mon 13 Dec 2010 09:54 PM

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Polyserve of Egypt mulls IPO next year to finance expansion

Global financial crisis has slowed IPOs in the North African country

Polyserve of Egypt mulls IPO next year to finance expansion
Cairo based Polyserve plans to complete restructuring its operations in the next six months

Polyserve for Fertilizers & Chemicals, an Egyptian fertilizer producer, may sell shares in an initial public offering as soon as next year to finance expansion, economic adviser Mahmoud Ibrahim said.

“We have not made a decision as to a private or public placement yet, but we’re seeing huge interest from investors in the Egyptian fertilizers sector in general, which is encouraging,” Ibrahim, who is also a board member of Polyserve’s largest unit Abu Zaabal Fertilizers, said in an interview on Monday in Cairo.

Amer Group Holding, an Egyptian real estate company, and Juhayna Food Industries, the country’s biggest publicly traded milk and juice maker, sold shares in initial offerings this year. The global financial crisis has slowed IPOs in the North African country as investors retreated from emerging markets.

Cairo based Polyserve spent $121m upgrading the Abu Zaabal factory and $43.1m to build a new plant in Aswan, Ibrahim said. The factories are expected to produce 1.1 million tons and 300,000 tons of fertilizer in 2011, he said.

Ibrahim said, Polyserve plans to complete restructuring its operations in the next six months. He said, revenue in the first nine months rose 38 percent to $80.7m from a year earlier.

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