Egypt's PM heads to Japan for TICAD 9 Africa development summit    National Council for Childhood reviews plan to combat child labour    Egypt's Supreme Organ Transplant Committee strengthens oversight, standards    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    African agribusiness market expected to reach $1tr by 2030    Price cuts underway across Egypt, says trade federation report    Zelenskyy seeks US security guarantees as Trump says he can 'end war now'    Israelis protest for hostage deal amid growing pressure on Netanyahu    Serbia's Vucic vows 'tough measures' against protesters after unrest    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Government aims to offer Banque du Cairo GDRs within 1 month to increase capital: government source
The bank's shares will be listed in the London stock exchange, hoping to increase US dollar inflow and benefit from the latest offering of bonds.
Published in Daily News Egypt on 05 - 02 - 2017

A government source told Daily News Egypt that the registration of shares of Banque du Caire will begin within a few days, followed by applying for registration of the bank's shares in the London stock exchange within a period of not more than one month from now.
The source added that the initial public offering (IPO) of the bank will take place in two stages. The first stage will include the IPO of global depositary receipts (GDR) on the London stock exchange with a ratio of roughly 5%.
The second stage will include the IPO of the bank's shares in the Egyptian Exchange (EGX) at 15%. The source emphasised that the majority of those ratios are discretionary and the offering advisers in EFG-Hermes and HSBC bank are working on determining the right time, the increase ratio, and the IPO share in the EGX.
According to the source, the goal of offering Banque du Caire's GDRs is to provide liquidity and inflows of foreign currency, to examine the international markets, and gain investors' confidence and views towards Egyptian private companies after the successful IPO of US dollar bonds.
Egypt has successfully sold dollar bonds worth $4bn in the international markets days ago. More than triple of the bond's IPO—$13bn—was covered.
The EGX on Wednesday said that Banque du Cairo requested to register its shares in the EGX, with a capital worth of EGP 2.25bn distributed on 562.5m shares with a nominal value of EGP 4 per share.
The GDRs are considered a tradable financial tool in the international money markets. They are being traded as a substitute for the original securities in the international money markets, such as the London stock exchange, the Luxembourg stock exchange, or the New York stock exchange.
GDRs are issued to increase the capital. Ahmed Abou El Saad, chairperson of Rasmala, a company for investment funds, said increasing the bank's capital through offering GDRs is a professional step. The step will enable the bank to provide dollar liquidity, to diversify its shareholders, and to expand the investors' base, which contributes to increasing the stability of the price of the share.
He added that offering GDRs increases the capital significantly, a difficult step in local markets, as well as strengthens the bank's position among the global markets and enhances its services.
The governor of the Central Bank of Egypt (CBE), Tarek Amer, said in March 2016 that the CBE will offer state-owned Banque du Caire in the EGX during 2017, in order to increase its capital by 20% and to strengthen the EGX—a step which has not happened yet.
The IPO of Banque du Caire is included in the plan of offering shares of banks and public companies in the EGX, aiming to collect EGP 6-8bn per year. The plan is part of an economic reform programme adopted by the government in agreement with the International Monetary Fund (IMF) which agreed to lend Egypt $2bn, repayable over three years.


Clic here to read the story from its source.