United Bank eyes raising up to EGP 5.1 bln in EGX offering

Ahram Online , Tuesday 12 Nov 2024

The United Bank (UB) is aiming to raise between EGP 4.16 billion and EGP 5.14 billion in the upcoming initial public offering (IPO) on the Egyptian Exchange (EGX), according to a release published on the UB's website on Monday.

United Bank

 

The bank has set an indicative price range for the offering between EGP 12.70 and EGP 15.60 per share.

The offering allocates 313.5 million shares to institutional investors in Egypt and elsewhere and 16.5 million shares to retail investors. 

An institutional offering targets large investors (banks and funds) with larger transactions, less regulatory burden, and potentially negotiated pricing.

Meanwhile, a retail offering targets individual investors with smaller investments, stricter regulations, and a fixed or public offering price.

This release follows the UB’s announcement in October, which revealed plans to list 30 percent of its capital, comprising 330 million shares held by the Central Bank of Egypt (CBE) on the EGX.

In September, the CBE announced plans to sell some of its shares in UB on EGX.

According to the UB website, the bank has appointed CI Capital Investment Banking S.A.E. as the sole global coordinator and sole bookrunner for the offering.

Meanwhile, Helmy, Hamza & Partners, the Cairo office of Baker McKenzie, has been selected as the offering’s legal counsel.

The bank seeks the necessary approvals for the offering from the Financial Regulatory Authority (FRA) and EGX, expected to run by the end of the fourth quarter of 2024.

The UB is one of 32 state-owned companies selected for divestment under the government's IPO programme.

This offering aligns with the government’s strategy to boost the private sector’s role in the economy, amid its $8 billion loan agreement with the International Monetary Fund (IMF), which aims to stimulate growth driven by private-sector investments.

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