Egypt’s Banque du Caire begins trading after record EGP36.37 bln IPO
Banque du Caire began trading on the Egyptian Exchange (EGX) on Monday after completing a 36.37 billion Egyptian pound ($730 million) initial public offering, the largest in Egypt’s capital market history.
Prime Minister Moustafa Madbouly attended the opening trading bell ceremony alongside Central Bank of Egypt (CBE) Governor Hassan Abdalla, and Financial Regulatory Authority (FRA) Chairman Islam Azzam, marking the bank’s listing on the exchange’s main market under the banking sector.
The offering comprised 6.8625 billion shares, representing 45 per cent of Banque du Caire’s total 15.25 billion shares, at a value of 36.37125 billion pounds. The transaction implies a market capitalisation of around 80.825 billion pounds for the bank, whose issued capital stands at 30.5 billion pounds.
Abdalla said strong demand from international investment institutions, including the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), as well as individual investors, demonstrated confidence in Egypt’s banking sector and economic reform efforts.
The offering’s public tranche was more than 27 times subscribed, with buy orders exceeding 9.28 billion shares, according to EGX Chairman Omar Radwan. The private placement also attracted broad institutional and international demand.
Radwan said the offering attracted more than $500 million in funds transferred from abroad, describing the listing as a sign of confidence in Egypt’s economy and the capital market’s ability to accommodate large-scale strategic offerings.
The 36.37-billion-pound transaction marked a new phase for the EGX, Radwan said, adding that the bourse would continue developing financial instruments to attract more retail and institutional investors, including regional and international investment funds.
Azzam said the listing was a key step towards improving asset management, broadening ownership, attracting investors capable of developing assets, expanding market capitalisation and deepening the capital market.
He also highlighted coordination among the FRA, the State-Owned Enterprises Unit, the investment banks managing the offering, the legal adviser, the EGX, and Misr for Central Clearing, Depository, and Registry (MCDR) in completing the listing and regulatory requirements.
Established in 1952, Banque du Caire’s listing forms part of Egypt’s broader efforts to increase private-sector participation in the economy and expand the role of the capital market in financing national companies.