Arabia Group for Real Estate Investment, a holding company of 10 companies, is planning to list 20-30% of its shares on the Egyptian Stock Exchange (EGX) by the end of 2018 to raise its capital to finance the company’s future expansions in the sector, Chairman Tarek Shoukry said, Youm7 reports.

“We are currently in the process of preparing for the initial public offering [IPO]. We are studying the application of governance and the company’s financial evaluation,” Shoukry.

The company has also yet to select an advisor for the IPO. It is expected that a company operating in the local market will be selected soon.

Commenting on the timing of the IPO, Shoukry said that the reason is the improved performance of EGX and the increasing volume of foreign investors’ transactions.

He added that EGX does not offer cheaper finance to the group; however, increasing the company’s capital through the capital market is better to finance the company’s future projects.

The investment group is not the only real estate company to plan for an IPO this year. Al-Ahli Real Estate Development Company, owned by Sabbour Family, is also planning to offer a 25-30% stake in EGX in 2018.

EGX includes a number of major developers and real estate companies, such as Palm Hills Development, Talaat Moustafa Group Holding, 6th of October Development and Investment – SODIC, Nasr City Housing and Development.