Egypt’s Banque du Caire eyes slimmed-down IPO post-Covid
Banque du Caire was on the cusp of completing a $500 million listing in London and Cairo last year when Covid hit. Its chairman Tarek Fayed meets Euromoney to talk about investing in people and digital – and why he still wants to complete a slimmed-down stock sale when conditions allow.
Banque du Caire was so nearly there.
The Egyptian lender was on track to complete a $500 million initial public offering in the spring of 2020. Everything was in place. Its owner, state-owned lender Banque Misr, had committed to offloading up to 30% of the Cairo-based bank.
Underwriters HSBC and EFG Hermes had a slew of anchor investors, including the European Bank for Reconstruction and Development and the Sovereign Fund of Egypt, ready to buy up to $75 million worth of available stock.
The IPO mattered on a number of levels. To the state, it would breathe new life into a privatization process that had been left to drift. It would also deepen liquidity on the Egyptian Exchange. A concurrent sale of global depositary receipts (GDRs) in London would encourage international investors to buy into a newly reenergized economy.