EFG Hermes, a leading investment bank in the Middle East and North Africa, has successfully completed its advisory role as joint global coordinator and bookrunner in the historic initial public offering (IPO) of Cairo Bank on the Egyptian Exchange. The IPO, valued at EGP 36.37 billion (approximately USD 658 million), marks the largest listing in Egyptian stock market history denominated in Egyptian pounds. This deal solidifies EFG Hermes' prominent position in Egypt's capital markets.
The Cairo Bank IPO involved 6.862 billion shares, representing 45% of the bank's total issued capital, owned by Banque Misr. The final price was set at EGP 5.30 per share, resulting in an implied market capitalization of approximately EGP 80.83 billion (around USD 1.46 billion). The institutional tranche comprised 6.519 billion shares, accounting for 95% of the offered shares and 42.75% of the bank's total issued capital, raising EGP 34.55 billion (about USD 625 million).
The institutional tranche saw unprecedented demand, with total subscriptions reaching EGP 205.8 billion (approximately USD 3.72 billion), representing a coverage ratio of 5.95 times. Excluding strategic investors, the remaining institutional tranche was covered 19.79 times, reflecting strong interest from international, regional, and local institutional investors. Strategic and anchor commitments were secured from the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Sustainable Capital, Redwheel, and Waha Capital.
The retail tranche for individual investors was oversubscribed 27 times, with total subscriptions amounting to EGP 49.2 billion (around USD 921 million). Majeed El-Iouby, Co-Head of EFG Hermes' Corporate Finance and Equity Capital Markets, expressed pride in advising Cairo Bank on this landmark IPO, highlighting its significance for Egypt's capital markets and the government's privatization program.
El-Iouby emphasized that the successful execution of this large-scale privatization deal showcases the growing depth of Egypt's capital markets and renewed interest from foreign institutions in high-grade Egyptian assets. He also underscored EFG Hermes' capabilities in handling complex transactions and its commitment to connecting Egyptian corporates with global investors.
This deal follows EFG Hermes' recent successes in advising on the IPOs of Gourmia Egypt and MNT-Halan, which have demonstrated strong post-listing performance and attracted significant investor interest. These transactions have contributed to increased liquidity in the Egyptian market, and with more listings planned for the remainder of 2026 and early 2027, EFG Hermes continues to play a leading role in driving market activity.
The Cairo Bank IPO marks EFG Hermes' third major listing in Egypt this year, solidifying its position as a top investment bank in the region. The company's expertise in executing large-scale IPOs and its ability to attract international investment have been instrumental in Cairo Bank's successful listing, which is expected to have a positive impact on Egypt's capital markets.
Key points
- EFG Hermes advised on Cairo Bank's record-breaking EGP 36.37 billion IPO, the largest listing in Egyptian stock market history.
- The IPO saw strong demand from institutional and individual investors, with a coverage ratio of 5.95 times for the institutional tranche.
- The deal demonstrates EFG Hermes' capabilities in handling complex transactions and its commitment to connecting Egyptian corporates with global investors.
