Photo of people standing in the line to make withdrawals outside Banque Du Caire in downtown Cairo-Reuters
CAIRO - 18 April 2019: Banque du Caire aims to offer a stake of its shares on the Egyptian Exchange (EGX) and one of the international exchanges during the current year, Chairman of Banque du Caire Tarek Fayed said.
Fayed added that it's expected to offer around 20 to 30 percent of the bank's shares on EGX before the end of this year for $300 to $400 million.
About the timing of the offering, Fayed said that it depends on the conditions of the global markets.
Governor of the Central Bank of Egypt (CBE) Tarek Amer told Bloomberg earlier that Egypt plans to offer a stake of Banque du Caire on EGX by the end of this year.
Banque du Caire is one of the largest public banks in Egypt and is wholly owned by Banque Misr, Egypt's second largest bank.
By the end of February, Egypt floated a stake of Eastern Company on EGX, and the public and private offerings on the course were completed Wednesday, March 6, with a total value of LE 1.72 billion.
Meanwhile, Minister of Petroleum Tarek el-Molla told local media earlier that Egypt is expected to float a stake of Oil Company Engineering for Petroleum and Process Industries (ENPPI) on the Egyptian Exchange (EGX) in the first half of 2019, or before the Holy month of Ramadan.
In 2018, Egypt delayed listing shares of state-owned companies on the Egyptian Exchange, such as the 4.5 percent stake of Eastern Company slated for October. The government attributed the delay to volatility in the global market, noting that if the shares had been floated, they would have failed to be covered at proper valuation.
In 2016, Egypt announced the launch of the government’s IPO program offering shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.
As part of the economic reform program, the government targets offering 15-30 percent of stakes in state-owned companies on the stock exchange (EGX) to increase funding to Egyptian companies, maximize the benefit from state assets, and attract local and foreign capital flows to Egypt.