Banque Du Caire IPO 27 Times Oversubscribed Ahead of Stock Market Debut
Retail investors submitted orders for approximately 9.29 billion shares against a public tranche of 343.1 million shares, amounting to 49.2 billion EGP compared to 1.8 billion EGP worth of offered shares.
Banque Du Caire announced that the retail tranche of its initial public offering closed 27 times oversubscribed, after retail investors submitted orders for about 9.29 billion shares against a public tranche size of 343.1 million shares, according to Enterprise platform.
The value of the orders reached approximately 49.2 billion EGP against 1.8 billion EGP of offered shares, while the private placement closed six times oversubscribed in total.
The Egyptian Cabinet had approved the offering of a stake ranging between 30% and 45% of the bank's shares, in a step preceding the start of trading on the Egyptian Exchange.
Trading of Banque Du Caire's shares on the Egyptian Exchange is expected to begin on November 2, following the completion of offering and listing procedures.
What Do These Terms Mean?
Oversubscription: The number of shares requested by investors divided by the number of shares offered. A coverage of 27 times means that demand was 27 times the supply.
Initial Public Offering (IPO): The first sale of a company's shares to the public on the stock exchange to raise capital.
Public Tranche: The portion of the offering allocated to retail investors, also known as the retail tranche.
Private Placement: The sale of shares to institutional and major investors prior to being offered to the public.
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