Banque du Caire: Only $166 Million Locked If IPO Price Tops EGP 5.06

Only $166 million of Banque du Caire's commitments from four foreign cornerstone investors is locked in if the offering price exceeds EGP 5.06, because the largest pledge, a $100 million commitment from British hedge fund Helikon, is conditional and can withdraw above that level, according to the bank's draft prospectus.

Total commitments amount to $256 million, but the secured portion is limited to $166 million from the other three investors, or 38% of the institutional tranche.

The other three investors are London-based Redwheel, Africa-focused Sustainable Capital, and UAE-based Waha Investments. Sustainable Capital's share stands at around 784.7 million shares, representing 18% of the institutional tranche, while Redwheel, listed in the prospectus as RWC Asset Management, is participating with 490.4 million shares or 11%, through its UK operations and a US subsidiary. Waha Investments is participating with 395 million shares, representing 9%.

Helikon's $100 million commitment represents the largest ticket and the least confirmed, as it pledged a fixed USD amount and is committed only up to a price close to the midpoint of the range. At EGP 5.06, this equals about 1.06 billion shares, or roughly a quarter of the institutional tranche, and if the price exceeds that, it may withdraw.

The four investors' commitments cover about 60% of the base offering and nearly 63% of the institutional tranche if priced at EGP 5.06, the midpoint of the price range between EGP 4.82 and EGP 5.30, according to the prospectus calculations.

CI Capital is acting as the sole global coordinator and joint bookrunner, while EFG Hermes acts as joint global coordinator. Baker McKenzie is advising the bank and its parent company on US and English law, while Helmy, Hamza & Partners, a member firm of Baker McKenzie, is advising on Egyptian law.

What Do These Terms Mean?

Initial Public Offering (IPO): The first sale of a company's shares to the public, entering its shares for trading on the stock exchange.

Cornerstone Investor: A major investor who commits to buying a pre-determined stake in the offering, giving the market confidence in demand.

Institutional Tranche: The portion of the offering allocated to funds and large financial institutions, rather than retail investors.

Bookbuilding: Collecting investor demand to determine the final offering price based on the level of demand.