The Egyptian government has shelved plans for a direct sale of Banque du Caire after receiving what it deemed unsatisfactory offers, according to a government source familiar with the privatization file.
The highest bid, submitted by Emirates NBD, failed to exceed $1.5 billion. This fell short of the government's expectations of raising more than $2 billion from the sale. The Central Bank of Egypt had approved due diligence for Emirates NBD in March.
In light of the underwhelming offers, the government now plans to float 30% to 35% of Banque du Caire's shares on the Egyptian Exchange in July. The listing forms part of Egypt's broader privatization program aimed at closing the external financing gap and increasing foreign currency inflows.
"We are seeing stronger investor appetite in the public market after the success of United Bank's offering last November," the source, who spoke on condition of anonymity told Al Manassa.
The United Bank's private placement was oversubscribed six times, and its final share price was set at 13.85 Egyptian pounds ($0.28). That momentum appears to be shaping the government's revised strategy.
Banque du Caire, with paid-in capital of 14 billion Egyptian pounds ($279.8 million) and authorized capital of 20 billion ($399.8 million), reported a profit of 12.4 billion pounds ($248 million) last year—an 84% increase from the previous year. The bank's total assets also surged by 20%, reaching 483 billion pounds ($9.65 billion).
This move aligns with the government's privatization program aimed at narrowing the external financing gap and boosting dollar revenues. Prime Minister Mostafa Madbouly previously named Banque du Caire, United Bank, and Arab African International Bank among the entities earmarked for partial privatization.
The source also revealed that the state is evaluating a potential public offering of its 20% stake in the Bank of Alexandria in July. Talks with Italy's Intesa Sanpaolo, which owns the remaining 80%, have stalled overvaluation.
Egypt initially launched its privatization program in March 2023, with plans to offload stakes in 40 entities across 18 sectors. Originally set to conclude in March 2024, the timeline has since been extended to the end of December.
Through this effort, the government aims to raise between $3 billion and $4 billion by the end of 2025. Several companies have already completed internal preparations and are expected to be announced soon, according to the source.
