Shares of Banque du Caire (BDC) started trading on the Egyptian Exchange (EGX) main market on Monday following a record EGP 36.37bn initial public offering (IPO), the largest in the history of Egypt's capital market. The offering comprised 6,862,500,000 shares, representing 45% of the bank's total 15,250,000,000 shares. This significant listing has garnered substantial attention from investors and market analysts.
The IPO gives BDC a market capitalisation of approximately EGP 80.82bn, while the bank's issued capital stands at EGP 30.5bn. According to EGX Executive Chairperson Omar Radwan, the public offering was oversubscribed 27 times, with purchase orders exceeding 9.28 billion shares. This overwhelming demand demonstrates strong investor confidence in the bank and the Egyptian economy.
The IPO attracted more than $500m transferred from abroad, alongside broad demand for the private placement from international institutions, including the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). This international interest highlights the appeal of the Egyptian market to global investors and the bank's potential for growth.
Prime Minister Mostafa Madbouly stated that the IPO aligns with the government's State Ownership Policy Paper, which aims to enhance private sector participation and broaden the ownership base for individual citizens and institutional investors. This initiative is part of a broader effort to promote economic reform and privatisation in Egypt.
Central Bank of Egypt (CBE) Governor Hassan Abdalla noted that the institutional and retail demand reflects the strength and resilience of the Egyptian banking sector and confidence in the state's economic reforms. This confidence is crucial for attracting international investments and promoting economic growth.
Omar Radwan emphasised that the record demand confirms institutional and public confidence in the national economy. He added that the listing will advance institutional development plans and deepen liquidity in the Egyptian Exchange. The successful IPO is expected to have a positive impact on the Egyptian capital market.
The inaugural trading session was attended by several high-profile figures, including Prime Minister Mostafa Madbouly, CBE Governor Hassan Abdalla, and EGX Executive Chairperson Omar Radwan. The event marked a significant milestone in the history of the Egyptian Exchange and Banque du Caire.
Key points
- The IPO was oversubscribed 27 times, with purchase orders exceeding 9.28 billion shares.
- The listing gives BDC a market capitalisation of approximately EGP 80.82bn.
- The IPO attracted more than $500m transferred from abroad.
