Banque du Caire applies to list shares in EGX

Daily News Egypt
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The Egyptian Exchange (EGX) said in a statement on Wednesday that Banque du Caire applied to list its shares in the EGX with a capital of EGP 2.25bn, distributed over 562.5m shares with a nominal value of EGP 4 per share.

The EGX added in a statement on its website that it is currently studying documents provided by the bank to be presented to the listing committee if the required documents are met.

The Central Bank of Egypt’s (CBE) governor Tarek Amer said in March 2016 that the CBE will offer Banque du Caire (wholly state-owned) in the EGX during 2017 to increase its capital by 20%, in order to strengthen the EGX.

This comes within the framework of a plan to offer shares of banks and public companies on the EGX to collect EGP 6-8bn per year, as part of an economic reform programme adopted by the government in agreement with the International Monetary Fund (IMF) that agreed to lend $12bn over three years.

This programme includes offering companies from the petroleum and industry sectors in the EGX.

The last IPO of governmental companies was in September 2016, when the government offered Misr Fertilizers Production Company (MOPCO), 10 years after the IPO of Telecom Egypt, AMOC, and SKPC.

Mohamed Omran, chairperson of the EGX, told Reuters Wednesday that Banque du Caire will be registered during the coming week.

Mounir El-Zahid, chairperson of Banque du Caire, said in August 2016 that offering 20% of the bank’s shares in the EGX will not affect the state’s share in its ownership; therefore, the state’s control on the bank will not be affected.

In November 2016, President Abdel Fattah Al-Sisi called on the government to set a timetable to offer the state’s companies in the EGX.

Banque du Caire’s profits registered EGP 2.8bn during the last fiscal year, according to El-Zahid.

Amer said in March 2016 that the CBE will offer a share of the Arab African International Bank. A share of 50% is owned by the CBE and the rest is owned by the Kuwaiti side. The Egyptian government will offer 20% of its share and Kuwait will offer an equal amount.

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