Strong demand from international and individual investors for Banque du Caire’s initial public offering (IPO) underscores confidence in Egypt’s banking sector and the broader economy, Central Bank of Egypt (CBE) Governor Hassan Abdalla said on Monday, as the lender’s shares began trading on the Egyptian Exchange (EGX).
Abdalla attended the opening-bell ceremony alongside Prime Minister Mostafa Madbouly, marking the bank’s debut on the EGX main market following an EGP 36.37 billion offering, the largest in the history of the Egyptian stock market.
He highlighted the participation of major international institutional investors, including the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), noting that their involvement reflects the resilience of Egypt’s banking sector and the strength of its financial indicators.
The CBE Governor added that the successful listing demonstrates investor confidence in the Egyptian economy and the effectiveness of the country’s economic reform programme, further strengthening Egypt’s position as an attractive destination for international investment.
The offering comprised 6.86 billion shares, representing 45% of Banque du Caire’s total 15.25 billion shares, with a total value of EGP 36.37 billion. The transaction places the bank’s market capitalisation at approximately EGP 80.83 billion, while its issued capital stands at EGP 30.5 billion.
Strong Subscription Demand and Foreign Investment
The public tranche was oversubscribed 27 times, with purchase orders exceeding 9.28 billion shares, while the private tranche also attracted strong demand from institutional and international investors, according to Omar Radwan, Executive Chairman of the EGX.
Radwan revealed that the IPO attracted more than $500 million in foreign capital transferred from abroad, describing the transaction as evidence of the Egyptian market’s ability to accommodate large-scale offerings and attract international investment.
Prime Minister Mostafa Madbouly described Banque du Caire’s listing as a significant milestone in Egypt’s economic reform efforts and the implementation of the State Ownership Policy, which aims to expand private-sector participation and broaden ownership among individual and institutional investors.
Radwan added that the listing is expected to enhance liquidity in the Egyptian capital market and attract further domestic and international investment through the introduction of new financial instruments and mechanisms.
