Banque du Caire is owned by Banque Misr but run by an independent board/Bloombergby Bloomberg
The Abu Dhabi Development Holding Company (ADDH) and Sovereign Fund of Egypt are seeking to acquire a combined stake in Banque du Caire as part of the state-owned lender’s initial public offering (IPO).
Ayman Soliman, the CEO of the Sovereign Fund of Egypt, said, “We are in talks with Banque du Caire on exploring the opportunity to participate as a strategic investor in the IPO process, an agreement may be made by the end of March 2020.”
Banque du Caire is targeting to raise $500 million by offering a stake of 20 to 30 per cent, said Tarek Fayed, the Chairman of Banque du Caire. Anchor investors will be offered part of that stake, with a cap of around five per cent each of the total ownership, said Fayed.
Fayed said that the bank is in talks with regional and foreign financial institutions and funds for the sale, without identifying any of them.
Last year, Egypt and the UAE agreed a $20 billion investment platform to put money into a range of sectors and assets and it will be run by Sovereign Fund of Egypt and ADDH.
The government launched the programme to offer stakes in state-run firms three years ago to either list anew or sell additional stakes but moved ahead with only one before the initiative stalled amid a market downturn.
Furthermore, the European Bank for Reconstruction & Development (EBRD) also plans to buy a stake in Banque du Caire as part of the state-owned lender’s IPO.
Banque du Caire is owned by Banque Misr but run by an independent board.