Banque du Caire has raised more than 585 million euros in an initial public offering, completing one of Egypt's largest stock market flotations in years. Majority owner Banque Misr sold a 45 percent stake in the lender, raising approximately 585.4 million euros, or 36.37 billion Egyptian pounds, according to a statement released on Monday by the Egyptian Cabinet.
The transaction values the financial institution at slightly over 1.3 billion euros, equivalent to 80.83 billion Egyptian pounds. The offering comes as the Egyptian government accelerates structural reforms backed by the International Monetary Fund, seeking to expand private enterprise and reduce state dominance in the national economy.
Details of the share sale
Under the terms of the final offering, state-run Banque Misr divested 6.86 billion shares in Banque du Caire at a price of 5.30 Egyptian pounds, or about 8.5 euro cents, per share. Banque Misr, founded in 1920 by industrialist Talaat Harb, is Egypt's second-oldest state commercial bank and had long held a controlling interest in the institution.
The institutional tranche attracted major international development organisations looking to support the modernisation of the Egyptian banking system. The European Bank for Reconstruction and Development took a leading role in the transaction, investing 100 million dollars, or approximately 89 million euros, to acquire a 6.9 percent equity holding in the bank.
The London-based multilateral development bank confirmed the transaction in an official statement on Monday. The International Finance Corporation, the private-sector investment arm of the World Bank Group based in Washington, also participated as one of the cornerstone investors. Both institutions regularly finance projects in emerging markets to foster sustainable growth, improve corporate governance, and help local financial institutions meet international standards.
Decades of delays
The successful float ends an extraordinarily long wait for Banque du Caire, whose public listing had been proposed and repeatedly postponed for more than two decades. Hussein Abaza, the chief executive of Banque du Caire, told Agence France-Presse that he welcomed the conclusion of an initiative that had been under discussion on and off for over twenty years.
Abaza explained that several severe international crises had disrupted earlier attempts to list the bank on the Egyptian Exchange. He specifically cited the disruption caused by the coronavirus pandemic, alongside the geopolitical and financial shocks triggered by the war in Ukraine and the conflict in Gaza, as key factors behind the prolonged delays.
Despite those obstacles, Abaza said the strong demand from investors represented an important vote of confidence in the domestic equity market. He added that the completion of the sale served as concrete proof that Egyptian authorities are fully committed to carrying out their privatisation agenda.
Banque du Caire was established in 1952, making it one of the country's historic commercial banking institutions. It currently ranks as Egypt's third-largest state-owned bank, behind the National Bank of Egypt and Banque Misr, operating an extensive network of retail branches and corporate lending services across the North African nation.
Egypt privatisation programme
Egyptian Prime Minister Moustafa Madbouly praised the completion of the offering, emphasising that achieving the listing despite persistent regional turbulence underscored the government's resolve. He said the authorities are determined to press ahead with the state asset divestment programme in order to unlock higher value from public assets.
Cairo has pledged to sell equity stakes in more than 30 state-controlled companies under the terms of its loan agreement with the International Monetary Fund. The Washington-based lender, founded in 1944 to oversee the international financial system, has long urged Egyptian policymakers to dismantle barriers to private business, overhaul state-dominated sectors, and strengthen foreign currency reserves.
The government is already preparing subsequent asset sales under that agreement. Officials granted preliminary stock exchange listing approvals to four state-owned companies in June, with public share flotations scheduled to take place before May 2027 as Egypt seeks to broaden capital markets and draw foreign capital into its economy.
