United Bank of Egypt sets IPO share price at $0.28 to raise $92 million
United Bank of Egypt has set the price for its shares in its first public sale (IPO) at $0.28 (EGP 13.85) each, aiming to raise $92.1 million (EGP 4.6 billion).
IPO Details
United Bank of Egypt is selling 30% of its shares on the Egyptian Stock Exchange, according to a statement shared on Wednesday.
The bank’s shares for big investors were in high demand, with six times more requests than available shares.
On November 20, the bank started offering 330 million shares to the public. The share price was set between $0.26 (EGP 12.7) and $0.31 (EGP 15.6) each.
Currently, all 1.1 billion shares of United Bank are owned by the Central Bank of Egypt.
This sale is part of a government plan to involve more private companies in the economy.
United Bank, owned almost entirely by the Central Bank, offers Islamic banking and other services through its 68 branches, 225 ATMs, and online platforms. The bank employs about 1,800 people.
The bank’s total assets grew from $1.48 billion (EGP 72 billion) in 2021 to $2.18 billion (EGP 106 billion) by June 2024.
Big Numbers
Egypt is working on a big $8 billion reform program, with the IMF reviewing its progress. If approved, this review could release a $1.3 billion loan.
Other Asset Sales
The last time Egypt sold part of a state-owned bank was in 2021, when the National Investment Bank sold 51% of its shares to EFG Hermes, an investment bank.
Now, more assets might be sold, including:
- The Central Bank of Egypt’s 49% share in the Arab African International Bank.
- Shares in Banque du Caire, which is owned by Banque Misr (controlled by the central bank).
The government is also planning to sell its remaining 20% share in Alex Bank to Intesa Sanpaolo SpA.
In November, Egypt’s cabinet announced plans to sell stakes in 15 more companies in the coming months.
Published: 28th November 2024
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