The United Bank (UB) is set to make waves in the financial market with its upcoming initial public offering (IPO) on the Egyptian Exchange (EGX). The bank aims to raise between EGP 4.16 billion and EGP 5.14 billion, marking a significant milestone in Egypt’s financial landscape.
IPO Details
UB plans to float 30 percent of its capital, equating to 330 million shares currently held by the Central Bank of Egypt (CBE). The indicative price range for the offering is between EGP 12.70 and EGP 15.60 per share, with shares divided between institutional and retail investors:
- 313.5 million shares will be allocated to institutional investors in Egypt and abroad.
- 16.5 million shares will be available to retail investors.
This dual allocation approach ensures broader participation while catering to the unique needs of institutional and retail investors.
Strategic Advisors
To ensure a seamless process, the bank has engaged CI Capital Investment Banking S.A.E. as the sole global coordinator and bookrunner. Legal counsel will be provided by Helmy, Hamza & Partners, the Cairo office of Baker McKenzie.
Government’s Vision for Private Sector Growth
The IPO aligns with Egypt’s broader economic reform plan, part of its $8 billion loan agreement with the International Monetary Fund (IMF). UB is one of 32 state-owned companies selected for divestment under the government’s strategy to enhance private sector involvement in the economy.
Timeline and Approvals
UB is currently seeking approvals from the Financial Regulatory Authority (FRA) and the EGX. The IPO is expected to take place by the end of the fourth quarter of 2024, signaling the culmination of a series of strategic steps by the government and CBE.
With this move, United Bank demonstrates its commitment to contributing to Egypt’s economic growth while offering investors a unique opportunity to be part of its journey.
