* Egyptian oil company expects share issues in H1
* Part of govt plan to list more state companies
* AMOC expect H2 net profit to match H1
* Will start refining next month
(Updates with more details, background)
By Ehab Farouk and Abdel Rahman Adel
ALEXANDRIA, Egypt, Feb 9 Egypt's Alexandria
Mineral Oils Co (AMOC) plans a secondary offering of
10-20 percent of its shares on the Cairo stock market and will
also issue 10 percent as global depositary receipts in London,
its chairman said.
The oil company first floated on the Cairo exchange in 2005
and around 20 percent of its shares are currently listed there.
President Abdel Fattah al-Sisi's office said in January that
Egypt plans to list shares in state-owned banks and other
companies on the stock market as part of moves aimed at
jump-starting investment and boosting the economy.
AMOC's Chairman Amr Mostafa said the board would decide next
week exactly how much of the company would be listed.
"I think AMOC will be the first company listed as part of
the government listings programme. The listing will come out of
the principal shareholder's share or from more than one
shareholder's shares," Mostafa said during an interview in his
office in Alexandria this week.
AMOC's biggest shareholder is state-run Alexandria Petroleum
Co. with a 20 percent stake. Two other state oil companies each
own 3.6 percent stakes and various banks and investment funds
own 52 percent of the company.
Mostafa said he expects the share issues would be in the
first half of 2017 and that the issue price would be the average
stock price for the six months preceding the listing.
He also said that the company plans to make dividend
payments of no less than 7-8 Egyptian pounds per share from
2016/17 profits, up from 5.5 pounds in 2015/16.
AMOC produces essential mineral oils, paraffin wax and its
derivatives, naphtha and butane, and distributes and markets
them in Egypt and abroad.
On Jan. 22 it announced a first-half net profit of 545.8
million Egyptian pounds ($30 million) up from 157 million a year
earlier and Mostafa said he expected a similar profit in the
The company is moving into oil refining and will start
operations at its Midor refinery next month.
"We agreed with the (state-owned) Egyptian General Petroleum
Corporation that we would start refining crude next month in
Midor. We will start with around 350,000 barrels per month and
the Corporation will buy the crude for us and we will sell the
products back to them," he said.
Mostafa said AMOC expects to make $2 per barrel and that it
aims to make refining crude oil contribute around 12 percent of
its annual profits.
Al-Ahly Capital, the investment banking arm of Egypt's
largest state-owned bank the National Bank of Egypt, will be
responsible for promoting the London GDR issue.
($1 = 17.9500 Egyptian pounds)
($1 = 17.6000 Egyptian pounds)
(Writing by Ahmed Aboulenein; Editing by Susan Fenton)