Banque du Caire approved to list in Egypt

The Egyptian Exchange has approved the listing of state-owned Banque du Caire, which aims to sell shares worth 2.25 billion Egyptian pounds ($130 million) on the bourse.

The equity listing is part of a government strategy to raise money by privatising state assets. Ministers have previously named state-owned oil companies such as Middle East Oil Refinery and the Egyptian Ethylene and Derivatives Company as candidates for initial public offerings (IPOs).

A filing from the exchange said Banque de Caire had been approved to list 562.5 million shares at a par value of 4 Egyptian pounds per share. The proceeds from the sale would most likely be used to reduce Egypt’s budget deficit.

At the end of last year, Egypt reached an agreement with the International Monetary Fund to borrow $12 billion to help balance its budget. The country’s stock market rose sharply as a result with the EGX 30 index, which includes the country’s top 30 listed companies in terms of liquidity and trading activity, reaching its highest point since 2008.

Egypt is expected to partly privatise a second state-owned lender, United Bank, later this year.

©2017 funds global mena

Related Articles