Egypt approves Banque du Caire’s share sale worth up to EGP24.25 bln

Egypt’s Financial Regulatory Authority (FRA) approved on Sunday the prospectus for Banque du Caire’s share offering, paving the way for the sale of a 30% stake in the state-owned lender valued at up to 24.25 billion Egyptian pounds.

The offering comes nearly nine years after the bank’s shares were provisionally listed on the Egyptian Exchange (EGX) on 8 Feb. 2017, without a full public offering.

The sale will comprise up to 4.575 billion existing shares in a secondary offering, with 95% earmarked for qualified investors in a private placement and 5% for the public. The indicative price range is 4.82 to 5.30 pounds per share, with the 24.25 billion pound valuation based on the top of that range.

The offering could be upsized to 45 per cent of the bank’s capital under the applicable rules, according to the FRA’s announcement.

The offering could be expanded to cover up to 45% of the bank’s capital under the applicable rules, according to the announcement.

Order books will be open from 19 Oct. to 23 Oct., and the final price will be announced by 26 Oct. based on investor demand, the FRA added.

“The approval comes as part of an integrated programme to manage state-owned companies, aiming to maximise the value of assets, widen private sector participation, and strengthen governance,” Hashem El-Sayed, head of the Cabinet’s State-Owned Enterprises Unit (SOE), said.

El-Sayed said the unit was working to speed up the offerings by coordinating with relevant authorities, completing valuations and resolving technical, regulatory, and legal hurdles to move companies from provisional listing to actual share sales.

About 28 state-owned companies have been provisionally listed on the Egyptian bourse under the programme, which the government says would deepen the capital market and open new investment opportunities.