Egypt Just Sold 45% of a State Bank for $658 Million and It's a Signal the IMF Is Watching

Egypt on Monday raised more than $650 million in the initial public offering of state-owned Banque du Caire, marking one of the biggest asset sales in years as international lenders push a privatisation drive.

The offering comes as Egypt advances reforms under an International Monetary Fund programme aimed at boosting private sector participation and reducing the state's role in the economy. The government has previously said it plans to sell stakes in over 30 state-owned companies under commitments linked to its IMF support programme.

Banque Misr, the bank's majority shareholder, sold 6.86 billion shares representing 45% of Banque du Caire at 5.30 Egyptian pounds per share, according to the final offer announcement. The sale raised about 36.37 billion pounds ($658 million) and valued the lender at around 80.83 billion pounds ($1.46 billion).

The International Finance Corporation and the European Bank for Reconstruction and Development were among the top investors. The EBRD said it had invested $100 million, acquiring a 6.9% share.

The bank's chief executive, Hussein Abaza, told AFP that "this is an IPO that's been more than 20 years on and off," citing the Covid-19 pandemic and wars in Ukraine and Gaza as hurdles.

"It's a sign of confidence in the stock market itself. It's also a sign that the country is serious about privatisation," he added.

Prime Minister Moustafa Madbouly said Monday's listing came despite regional tensions and underscored the government's commitment to “continuing its programme of state asset offerings, aiming to unlock greater value from public assets.”

Founded in 1952, Banque du Caire is Egypt's third-largest state-owned bank. In June, authorities granted preliminary listings to four state-owned companies ahead of planned stock market offerings by May 2027 suggesting this IPO may be the first of several.