While the world is monitoring the Egyptian experiment in privatization, many local authorities (individuals and institutions) criticized the pricing mechanism of the offered stakes which lead to stagnant rather than an active stock market, as individuals sold large volumes of privatized shares hoping to stop their losses. In an attempt to investigate this phenomenon, Prime Investments decided to develop an index for privatized initial public offerings. The index is constructed using a portfolio re-allocation policy, which enables the addition of companies to the index without affecting the index value. Prime IPO Index (PIPO) shows that an equally allocated portfolio, among the privatized companies through IPO’S has outperformed the market till today.