Egypt Raises $658 Million From State-Owned Bank IPO
Egypt has raised approximately $658 million through the initial public offering (IPO) of Banque du Caire, selling a 45 per cent stake in the state-owned lender as the government advances its economic privatisation programme.
The sale, completed on Monday, November 2, raised 36.37 billion Egyptian pounds, with shares priced at 5.30 pounds each. The transaction values the bank at approximately $1.46 billion.
Banque Misr, the bank’s majority shareholder, sold 6.86 billion shares, reducing its stake to 55 per cent while retaining control of the lender. The offering marks the largest IPO in the history of the Egyptian Exchange in Egyptian-pound terms.
Investor demand was strong, with the public offering oversubscribed 27 times. The institutional tranche attracted orders worth approximately 205.8 billion pounds, nearly six times the amount available.
The European Bank for Reconstruction and Development said it invested $100 million in the offering, acquiring a 6.9 per cent stake in Banque du Caire. The International Finance Corporation also participated among the major institutional investors.
Founded in 1952, Banque du Caire is Egypt’s third-largest state-owned bank. Its listing forms part of the government’s broader efforts to attract foreign investment, deepen the domestic capital market and reduce the state’s role in the economy.
Under reforms linked to an International Monetary Fund support programme, Egypt has pledged to sell stakes in more than 30 state-owned companies, expanding opportunities for private-sector participation.
The successful offering represents a significant step in Egypt’s privatisation drive after years of delays to plans to list the bank.
