Feb. 26 (Bloomberg) -- Citadel Capital, the Egyptian buyout company managing $7 billion, is in talks with four international banks to help it sell shares to the public to raise funds for new energy, food and manufacturing ventures.

``An IPO is planned for the second half to raise our capital by $150 million to $200 million,'' Managing Director Ahmed el- Houssieny said in a phone interview from Cairo today. ``We're looking into whether to go for Cairo and London or the Dubai International Financial Exchange.''

Cairo-based Citadel would sell new shares to raise its shareholder capital from 1.65 billion Egyptian pounds ($300 million), el-Houssieny said, declining to name the banks.

Founded in 2004 by Ahmed Heikal and Hisham el-Khazindar, Citadel's shareholders include Abu Dhabi-based Emirates International Investment Co., according to its Web site. Last year it bought Canadian oil company Rally Energy Corp. for $849 million and led a group of investors that sold Egyptian Fertilizers Co. to Abraaj Capital Ltd. for $1.41 billion.

``There's plenty of demand for initial public offerings in Egypt,'' said Angus Blair, head of research at Beltone Financial, a Cairo-based firm that manages $4.9 billion. ``International investors are always looking for good growth stories in Egypt.''

When Egyptian real estate company Talaat Moustafa Group sold 65 million shares to the public in November, investors offered to buy at least 41 times more stock than the amount available, according to sale manager EFG-Hermes Holding SAE.

With its IPO, Citadel would join buyout companies including KKR & Co. LP and Carlyle Group that have said they are weighing share sales to attract employees and allow founders to sell their stakes at a profit. Blackstone Group LP raised $4.75 billion from its June IPO, and KKR filed to go public July 3.

``We see opportunities in energy and commodities like foods in our focus region of the Middle East and North Africa,'' el- Houssieny said. Citadel has units in Algeria and will soon open in Libya, according to its Web site.

To contact the reporter on this story: Will McSheehy in Dubai at wmcsheehy@bloomberg.netMahmoud Kassem in Cairo at mkassem1@bloomberg.net

Last Updated: February 26, 2008 09:40 EST