Egypt’s Banque du Caire debuts on EGX after largest IPO in market history

Shares of Banque du Caire (BDC) began trading on the Egyptian Exchange (EGX) main market on Monday following a record EGP 36.37bn initial public offering (IPO), the largest in the history of the country’s capital market.

The offering comprised 6,862,500,000 shares, representing 45% of the bank’s total 15,250,000,000 shares. The IPO gives BDC a market capitalisation of approximately EGP 80.82bn, while the bank’s issued capital stands at EGP 30.5bn.

The public offering was oversubscribed 27 times, with purchase orders exceeding 9.28 billion shares, according to EGX Executive Chairperson Omar Radwan. The IPO attracted more than $500m transferred from abroad, alongside broad demand for the private placement from international institutions, including the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).

Prime Minister Mostafa Madbouly stated the IPO aligns with the government’s State Ownership Policy Paper, which aims to enhance private sector participation and broaden the ownership base for individual citizens and institutional investors.

Central Bank of Egypt (CBE) Governor Hassan Abdalla said the institutional and retail demand reflects the strength and resilience of the Egyptian banking sector and confidence in the state’s economic reforms, enhancing the country’s position as a destination for international investments.

Radwan stated the record demand confirms institutional and public confidence in the national economy, noting that the listing will advance institutional development plans and deepen liquidity in the Egyptian Exchange.

“Our celebration today at this historic headquarters to mark the start of trading in BDC shares signals a new and defining phase in the journey of the capital market. Together, we record the completion of the largest listing in the history of the EGX, with a total value exceeding EGP 36.37 billion. Undoubtedly, this benchmark extends beyond the listing of a reputable banking institution established in 1952; it serves as a tangible proof and a clear demonstration of confidence in the resilience of the Egyptian economy, the attractiveness of its investment climate, and the market’s capacity to absorb and cover billion-dollar offerings of strategic significance,” Radwan said.

“We will continue working to introduce innovative financial instruments and mechanisms to attract new segments of retail and institutional investors, as well as regional and international investment funds, and to position the EGX as a leading financial hub capable of keeping pace with ongoing developments while providing sustainable financing for major national institutions,” he added.

The inaugural trading session was attended by Madbouly, Abdalla, and Radwan, alongside Financial Regulatory Authority (FRA) Executive Chairperson Islam Azzam, Assistant to the Prime Minister and Chief Executive at the Cabinet’s Central Unit for Monitoring and Regulating State-Owned Companies Hashem El-Sayed. National Bank of Egypt CEO Mohamed El-Etreby, Banque Misr CEO Hisham Okasha, and BDC Managing Director and CEO Hussein Abaza were also present.