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Banque du Caire restructuring plan underway in full swing ahead of possible 2019 IPO Lender set to float 30% stake by early next January aims at raising EGP 10bn
Banque du Caire is looking to offer up to 30% of its capital on the Egyptian Exchange (EGX) in early 2019 within the framework of the government's initial public offerings (IPOs) programme. The bank is set to float the stake on the EGX following the completion of its restructuring plan, a top official at the bank told Daily News Egypt. In April, the Central Bank of Egypt's (CBE) governor, Tarek Amer forecasted that the bank would launch an IPO sometime towards the end of 2018 or early 2019. The offering is a part of Banque Misr's plan, which holds 100% of Banque du Caire, to raise EGP 10bn in proceeds from selling stakes in a number of other companies. In March, the Ministry of Finance said it was planning to offer up to 23 state-owned companies on the Egyptian bourse at a total value of EGP 80bn as part of the first phase of the government's IPOs programme, which aims to raise the EGX's market capital as well as boost daily trading volume. The buzz around initial public offerings in Egypt is growing louder, with more companies announcing plans for share sales. They join a growing line-up in what could prove the busiest year for new listings in Cairo since the 2011 uprising, which ousted President Hosni Mubarak. Growing confidence in economic policies introduced since the currency float has boosted the Egyptian stock market and is prompting companies to consider share sales. Property developers Rooya Group and Landmark Sabbour have announced IPO plans, while Carbon Holdings has hired investment bank EFG-Hermes to manage its market debut, Al-Borsa reported March 13. "While the potential to increase participation by Egyptians in stock-market investment is large, some of the biggest companies may wait with IPO plans until the central bank fulfils economists' forecasts of interest-rate cuts," said Allen Sandeep, head of research at Naeem Brokerage in a recent research note.
