Public auction vs sealed bids — what is the difference, and which to choose?

Every auction ends with the asset going to the best offer, but the way offers are made differs. In Egypt both methods are widely used to sell the assets of public bodies and companies.

Public auction

An open session attended by the bidders. It starts from an opening price, bids are called out and rise, and the asset goes to the highest bid when bidding stops.
- Advantage: direct competition and live transparency — everyone sees the price climb.
- Best when: the asset is in demand and buyers are many, such as vehicles, equipment and scrap.

Sealed bids

Each participant submits a written offer in a sealed envelope before a deadline; all envelopes are opened at once before a committee, and the sale goes to the best offer under the booklet's terms.
- Advantage: offers stay confidential until opening, and every participant has an equal chance without the pressure of the room.
- Best when: the assets are high-value or specialised, or the seller's procedures require confidential offers.

Which is better for the buyer?

At a public auction you know where you stand moment by moment, but you can get carried away. With sealed bids you make one offer, so study the asset well and fix your top price before writing it.

Which is better for the owner?

It depends on the asset, the expected number of buyers and the body's requirements. M.O Group runs both and helps the owner choose. More in how we run an auction.

Common questions