Retail Investors Over-Subscribe Banque du Caire IPO 1.5 Times on Third Day

Egyptian Exchange screens showed that the public offering of Banque du Caire shares was 1.5 times oversubscribed on the third day of subscription, after buy orders reached approximately 341 million shares against 228.75 million shares allocated for retail investors.

Subscription in both public and private tranches began on Monday, October 19. Institutional orders will continue to be accepted until Friday, October 23, while retail subscription will run until Wednesday, October 28. The final offering price is scheduled to be announced on Monday, October 26, with trading expected to begin in November.

The private placement tranche includes 4.34625 billion shares, representing 95% of the total offered shares and equivalent to 28.5% of the bank's issued capital, allocated to qualified investors. Meanwhile, the public offering tranche includes 228.75 million shares, representing 5% of the offered shares and 1.5% of the issued capital.

The Financial Regulatory Authority's approval allows for increasing the offering size by up to an additional 2.2875 billion shares, representing 15% of the bank's capital. If the option is fully exercised, total offered shares will rise to 6.8625 billion shares, or 45% of total bank shares, subject to approval by the Ordinary General Assembly on April 5, 2026.

What do these terms mean?

Initial Public Offering (IPO): The first sale of a company's or bank's shares to the public on the stock exchange, typically including a retail tranche and an institutional tranche.

Private Placement: The sale of shares to qualified investors such as funds, banks, and financial institutions, without offering them to retail investors.

Oversubscription: The ratio of purchase orders to the number of shares offered. A coverage of 1.5 times means demand exceeded supply by 50%.

Offering Price: The final price at which shares are sold in the subscription before trading begins on the stock exchange.