Egypt’s Banque du Caire expects IPO to take place early 2020

The head of Egypt’s state-owned lender Banque du Caire told reporters on Tuesday that he expects the bank will hold an initial public offering by the end of 2019 or in early 2020.

“We plan to offer 30-40 percent of the shares in the bank in principle through a capital increase and the sale of a stake to a strategic investor,” chairman and chief executive Tarek Fayed said.

Banque du Caire, the third biggest state bank in Egypt, aims to raise between $300 million and $400 million from the IPO, Fayed added.

The bank’s IPO is part of the government’s programme, initiated in 2016, to offer minority stakes in several state-owned companies operating in banking, petroleum, services, chemicals, shipping, maritime, and real estate sectors to help boost state finances.

The government intends to sell shares in dozens of state companies to boost public finances and draw more investors to the Cairo exchange. It hopes the sales will raise badly needed funds for the state and boost the private sector as the country implements austerity measures under the International Monetary Fund-programme and struggles to contain inflation and debt.

The list includes some companies already traded on the exchange and others that will hold an initial public offering.

The state owns vast swathes of Egypt’s economy, including three of its largest banks – National Bank of Egypt, Banque Du Caire, the United Bank of Egypt – along with much of its oil industry and real estate sector.

Comments
Loading...