Banque du Caire IPO Raises $650 Million

Egypt raised about $650 million on Monday in the initial public offering (IPO) of Banque du Caire, a state-owned bank, completing a privatisation first announced in 2007 as the government pushes ahead with reforms backed by the International Monetary Fund (IMF).

Banque Misr, the state-owned bank that owns Banque du Caire, sold 6.86 billion shares, or 45% of the lender, at 5.30 Egyptian pounds each. That was the top of an indicative range of 4.82 to 5.30 pounds. The sale raised 36.37 billion pounds, which sources convert at between $648 million and $658 million, and valued the bank at about 80.83 billion pounds ($1.46 billion). The proceeds go to Banque Misr, not directly to the government budget or to Banque du Caire’s capital. Banque Misr keeps the remaining 55%.

The offer was upsized from 30% to 45% after the regulator’s approval on 22 October. CI Capital, the lead manager, says demand reached 255 billion pounds ($4.5 billion), or seven times the offering, and calls it the largest IPO in the history of the Egyptian Exchange. The six institutional investors in the placement were the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Helikon, Sustainable Capital, RWC and Waha Investments.

The EBRD said it invested $100 million for 6.9%. The bank said the agreements with the EBRD and IFC create no voting arrangements with Banque Misr. Shares rose as much as 7% on their debut, touching 5.68 pounds, before paring some gains.

The listing is part of Egypt’s privatisation efforts. Reducing the state’s role in the economy is a key pillar of Egypt’s $8 billion IMF loan programme, which is due to end next month. The government has pledged to sell stakes in more than 30 state-owned companies. In June it granted preliminary listings to four others, with offerings planned by May 2027. More listings are planned in the petroleum and development sectors.

Prime Minister Mostafa Madbouly said the listing came despite regional tensions and showed the government’s commitment to “continuing its programme of state asset offerings.” Banque du Caire chief executive Hussein Abaza told journalists the IPO had been “more than 20 years on and off,” held back by the Covid-19 pandemic and the wars in Ukraine and Gaza, and called it “a sign that the country is serious about privatisation.”