Egypt’s Banque du Caire attracts UK, UAE and African investors for IPO worth up to $454 million

Egypt’s Banque du Caire has attracted commitments of up to $256 million from four international investors for its planned share sale, giving the government’s privatisation programme a significant boost as it opens part of the state-owned lender to outside ownership.

• Four international investors have committed up to $256 million to Banque du Caire’s IPO.
• Banque Misr plans to sell 30% of the Egyptian lender, potentially increasing the offering to 45%.
• The largest investor commitment depends on the final price, and proceeds go to Banque Misr.
• The transaction advances Egypt’s state asset sales, with trading expected in November.

The investors include UK-based Helikon and Redwheel, Mauritius-based Sustainable Capital and Abu Dhabi’s Waha Investments. Their participation brings capital from Europe, Africa and the Gulf into an offering that could raise approximately $413 million to $454 million at its initial size.

Banque Misr, the bank’s state-owned parent, is offering 4.575 billion existing shares, representing 30% of Banque du Caire. The sale could increase to 45%, depending on demand and the required decisions.

Because the transaction involves existing shares, the proceeds will go to Banque Misr. New investors would acquire part of its ownership, while the bank itself would receive no fresh equity from the offering.

The commitments are detailed in Banque du Caire’s preliminary offering circular, dated 18 October⁠. However, the amount of firm backing depends on the final share price.

Helikon’s $100 million commitment applies only up to a price close to the midpoint of the EGP4.82–EGP5.30 indicative range. The circular puts aggregate cornerstone commitments at $256 million up to that threshold, compared with $166 million across the full price range.

That condition creates a trade-off for the seller, seeking a higher price could reduce the amount covered by binding investor commitments. Final allocations have yet to be announced.

The offering reserves 95% of the shares for qualified investors and 5% for retail buyers. Egypt’s Financial Regulatory Authority approved the prospectus on 18 October, according to Daily News Egypt⁠.

The transaction would broaden ownership of an established Egyptian bank while supporting the government’s wider plan to sell stakes in state-owned businesses. The programme is intended to increase private-sector participation and deepen the country’s capital market.

The bank’s shares were temporarily listed in February 2017, but the current process moves the lender towards an actual public offering and trading. This is the sale of an operating state banking business, rather than the launch of a new lender.

Institutional bookbuilding runs until 23 October, with the final price expected on 26 October. EnterpriseAM reports that retail subscriptions continue until 28 October and trading is expected around 2 November.