Banque du Caire Prices IPO at Top of Range as Orders Hit $3.7 Billion

Banque du Caire sold shares at EGP 5.30 each, or $0.094, the highest price in its indicative range, after the private leg of its initial public offering pulled in $3.7 billion of orders.

That book, EGP 205.8 billion in total, is the largest ever recorded for a private tranche on the Egyptian Exchange. The offering is valued at $647 million, or EGP 36.4 billion, and implies a market capitalisation of $1.4 billion, or EGP 80.8 billion, for the state-owned lender.

Institutions took 95% of the deal and the public 5%. Some 6.5 billion shares went to buyers in the private tranche, equal to 42.75% of Banque du Caire's issued share capital. Books were covered six times over. Strip out the commitments made by key institutional investors and demand still ran at 19.8 times the shares available.

The final price sat at the top of the EGP 4.82 to EGP 5.30 band announced on October 18, a range of $0.086 to $0.094 per share. International, regional and local investors all placed orders.

Six institutions anchored the deal. The EBRD and IFC came in alongside Helikon, Sustainable Capital, Waha Investments and RWC.

Hussein Abaza, managing director and chief executive, said the response from investors backed the bank's case for its business, its overhaul and its prospects for growth over the long run. Completing the biggest private tranche in the history of the exchange, he said, was a milestone for Banque du Caire and for Egypt's capital markets.

The public portion covers 343.1 million shares, or 2.25% of issued share capital. Subscription opened on October 19 and is due to close on October 28. Execution is scheduled for October 29, with settlement and trading on the EGX under the ticker BQDC expected on November 2, subject to regulatory approval.

CI Capital is lead global coordinator and joint bookrunner. EFG Hermes is joint global coordinator and joint bookrunner.

The deal was lifted to 45% of issued share capital from 30% once regulators signed off, an increase the bank announced on October 22. Under the enlarged offering, the EBRD and IFC each agreed to take up to 15.74%.

Banque Misr, the lender's state-owned parent, is selling existing shares rather than issuing new stock, so the proceeds go to the parent rather than onto the bank's own balance sheet.

The listing lands in a busy stretch for Egyptian state asset sales. In June, the government said it expected as many as four state-owned companies to reach the exchange within 12 months. MNT-Halan said in October that it plans to offer 20% of its capital on the EGX.