By Radarr Africa Business Desk
LAGOS, November 9 (Radarr Africa) – Egypt raised more than $650 million from the initial public offering of Banque du Caire, one of the largest state asset sales in years, AFP reported on Monday, November 2.
Majority shareholder Banque Misr sold 6.86 billion shares, or 45 per cent of the bank, at 5.30 Egyptian pounds per share. The sale brought in about 36.37 billion pounds (658million)andvaluedthebankatroughly80.83billionpounds(1.46 billion).
Prime Minister Moustafa Madbouly said the listing went ahead despite regional tensions, and pledged to continue “state asset offerings” to unlock greater value from public assets, according to a government statement.
The International Finance Corporation and the European Bank for Reconstruction and Development (EBRD) were among the top investors. The EBRD said in its own statement that it invested $100 million for a 6.9 per cent stake.
Chief executive Hussein Abaza told AFP the IPO had been in the works for more than 20 years, and that the Covid-19 pandemic and the wars in Ukraine and Gaza had been obstacles. He called the listing a sign of confidence in the stock market itself.
The offering is part of reforms under an International Monetary Fund programme meant to widen private sector participation in the economy. The government says it plans to sell stakes in more than 30 state-owned companies. In June, four companies received preliminary listing approval, with offerings planned by May 2027.
Founded in 1952, Banque du Caire is Egypt’s third-largest state-owned bank.
State asset sales are a central part of Egypt’s agreement with the IMF, because they bring in foreign currency and reduce the state’s role in sectors where private firms can operate. Listing a bank on the exchange also adds to the depth of the local market, which has relied on a relatively small number of large companies.
