Banque du Caire Prices Its Offering at EGP 5.30, Valuing Bank at EGP 80.8 Billion

Banque du Caire plans to price its initial public offering at EGP 5.30 per share, the highest point of the indicative range, according to Zawya citing two bankers familiar with the deal.

The price places the value of the state-owned bank at around EGP 80.8 billion upon listing on the Egyptian Exchange, after the offering size was increased to 45% of capital instead of 30%.

The private placement was oversubscribed about six times, while the coverage ratio in the retail tranche reached 2.54 times, reflecting strong investor demand for the bank's shares.

The offering comes as part of the Egyptian state's program to sell stakes in state-owned companies and expand the ownership base, with Banque du Caire representing the country's third-largest state-owned bank.

What Do These Terms Mean?

Initial Public Offering (IPO): The first sale of a company's shares to the public with the aim of listing them on a stock exchange.

Indicative Range: The minimum and maximum price range within which pricing is conducted before setting the final offering price.

Retail Tranche: The portion of the offering available to individual and retail investors following the institutional tranche.

Coverage Ratio: The amount of demand for shares compared to the number of shares offered, where 2.54x coverage means demand equal to 2.54 times the supply.