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Egypt’s central bank said on Wednesday that it will sell a 30 per cent stake in state-owned United Bank through an initial public offering (IPO) on the local exchange, as the North African nation presses ahead with plans to attract foreign investment through the sale of public assets.
The Central Bank of Egypt is offering 330 million shares in United Bank at a maximum price of EGP15.6 apiece, representing 30 per cent of the bank’s total issued share capital.
The first tranche of 313.5 million shares will be offered via a private placement running through November 25. The final 5 per cent of the shares will be sold to the wider public from November 27 to December 3.
United Bank’s 1.1 billion shares were listed on the Egyptian Exchange on October 24 in preparation for the IPO.
United Bank increased its total assets to $2.2bn (EGP106bn) at the end of June from EGP72bn in 2021, the statement said. Its net profit rose to EGP1.74bn in 2023 from EGP1.15bn two years earlier.
The bank has 68 branches, 1,800 employees, and 225 ATMs. United Bank is one of 32 companies that the government plans to sell stakes in, including Banque du Caire, Arab African International Bank, and the Bank of Alexandria (Alex Bank).
Saudi Arabia’s Public Investment Fund (PIF) previously showed some interest in buying United Bank. However, the kingdom reportedly shelved the deal in February 2023 because of a disagreement with the Egyptian authorities over its valuation.
Egypt is reportedly in talks to sell the government’s remaining 20 per cent stake in Alex Bank to Italy’s Intesa Sanpaolo. An agreement would see the Italian lender, which already owns 80 per cent of the Egypt-based bank, buy the remaining 20 per cent and take complete ownership.
