Banque du Caire, an Egyptian bank, has announced plans to offer a 30% stake in its issued capital on the Egyptian Exchange (EGX). The bank's current shareholder, Banque Misr, will sell around 4.575 billion existing shares. The offering is expected to take place in late October or early November, subject to regulatory approvals. Trading is scheduled to begin in November.
The offering will comprise two tranches: a private placement for qualified investors in Egypt and selected international markets, and a public offering for retail investors in Egypt. The bank has appointed CI Capital Investment Banking as lead manager and international coordinator, while EFG Hermes Investment Banking will serve as offering manager and international coordinator. Baker McKenzie and Helmy, Hamza & Partners will provide legal advice.
Banque du Caire is among the state-owned entities the Egyptian government plans to offer under its initial public offering (IPO) programme, backed by an IMF $8 billion loan programme. The programme aims to expand and strengthen the private sector. The bank's managing director and chief executive officer, Hussein Abaza, described the planned listing as a key milestone in the bank's 70-year history.
Abaza stated that the bank looks forward to welcoming new investors as it enters a new phase of development as a publicly listed institution. The bank has built a diversified business spanning retail and corporate banking, small and medium-sized enterprises (SMEs), and microfinance. Its strategy focuses on generating attractive profit margins, maintaining disciplined risk and portfolio management, and preserving a strong financial position.
The Egyptian government has been reviewing the performance of state-owned and government-backed entities. In March, a study on the valuation of state-owned Banque du Caire was examined as part of efforts to expand and strengthen the private sector. The government aims to increase private sector participation in the economy.
The EGX has seen significant growth, with its market capitalization recently exceeding EGP 4.3 trillion. Average daily trading volumes have hit nearly EGP 10 billion. Chairman of the EGX, Omar Radwan, revealed that the stock market is preparing for a new wave of major government-backed listings.
The planned listing of Banque du Caire is expected to attract new investors and provide a boost to the Egyptian economy. The bank's IPO is part of the government's efforts to divest state-owned assets and increase private sector participation. Regulatory approvals are pending, and the bank is seeking to complete the offering in the coming months.
Key points
- Banque du Caire plans to offer 30% stake on EGX
- The offering will target qualified and retail investors
- The planned listing is a key milestone in the bank's 70-year history
