Banque Du Caire Sets Share Price at EGP 5.30 After 2.54x Oversubscription

Banque Du Caire set the final offering price of its shares on the Egyptian Exchange at EGP 5.30 per share following the closure of the private placement, according to Arab Finance.

The price was set via a book-building process after closing private placement requests on October 23, with the private tranche being six times oversubscribed. Excluding shares allocated to qualified investors previously announced on October 19 and 22, coverage reached 19.8 times.

The public offering was covered 2.54 times, as orders reached approximately 581.4 million shares compared to 228.75 million shares allocated to the tranche. Acceptance of purchase orders in the public offering continues until October 28 at the final price of EGP 5.30 per share.

The Banque Du Caire IPO is considered one of the most prominent deals in the government's privatization program, through which Egypt seeks to meet its commitments to the International Monetary Fund and reduce the state's role in economic activity. Egypt expects proceeds from the share sale to reach EGP 36.4 billion, or about $650 million, according to El Manassa.

What do these terms mean?

Offering Price: The price at which a company sells its shares to investors in a public or private offering.

Book Building: A process in which investors record their orders at a specific price and quantity to determine the final offering price based on demand volume.

Offering Coverage: The ratio of share orders to the number of offered shares, where an increase indicates strong demand.