A committee representing the authorities involved in the privatisation of Banque du Caire (BDC) is holding meetings to prepare for an initial public offering in the bank in April, according to sources cited by the local media.
The announcement comes despite the ongoing war between Iran and the US and Israel, which has had negative repercussions across several economic sectors in Egypt and the wider Arab region and raised questions about whether the offering will attract the desired level of investor demand.
In the wake of its plan to list BDC on the stock exchange during the first half of the year, the government announced on 5 March that the bank’s fair value stands at LE78 billion ($1.5 billion).
EFG Holding and CI Capital have been appointed as advisers to manage the offer, while Baker Tilly will act as an independent financial adviser.
The government seeks to offer 30 to 40 per cent of the bank’s shares on the stock exchange in order to collect between LE23 billion and LE32 billion ($460 to $650 million), according to an official who spoke to Asharq on condition of anonymity.
Banque du Caire was established in 1952 as an Egyptian joint-stock company and was subsequently brought under state ownership. It is the third largest state-owned bank after the National Bank of Egypt and Banque Misr.
At the end of June 2025, negotiations over the acquisition by Emirates NBD of BDC collapsed due to a disagreement over valuation.
The two sides differed over the final price of the deal, with the prospective buyer offering $1.2 billion before raising the bid to $1.5 billion, while the government insisted on a valuation of $1.8 billion for the bank’s full share capital.
In 2008, the bank had been valued at $2 billion by the National Bank of Greece, which had offered the same amount to acquire it.
Hany Geneina, head of research at Al-Ahly Pharos, believes that Banque du Caire is of the same calibre as listed banks including the Commercial International Bank (CIB) and the Abu Dhabi Islamic Bank, both of which are good performers on the stock exchange and enjoy strong valuations.
He added that the share price of CIB will likely serve as the benchmark against which the BDC valuation will be measured.
The government offered shares in the United Bank in November 2024. The private placement for institutional investors in the United Bank’s shares was oversubscribed nearly six times, and the final price was set at LE13.85 per share.
According to Geneina, bank shares are looked at as defensive stocks, as their performance tends to remain relatively resilient during market downturns. They are also considered to provide stable returns to investors over time, particularly given their regular cash dividend distributions following the approval of annual financial statements.
Mohamed Hassan, managing director of the Alpha Securities Brokerage, said that announcing the offering of BDC at this time signals the government’s commitment to listing it.
He noted that the stock market saw a significant correction in the days following the outbreak of the war on Iran, leading to a decline in share prices, a fact that makes traded equities more attractive to investors.
This has created favourable opportunities for investors to achieve considerable returns once conditions improve, he said, particularly given that the performance of most sectors remains robust.
Hassan added that Egypt currently enjoys greater political and security stability than the Gulf markets, even if it has experienced economic pressures.
He said that some foreign institutions have expressed an interest in investing in BDC in recent months. The managers of the offering are unlikely to face difficulties in securing sufficient demand to cover the share sale, he noted.
In January, press reports indicated that the European Bank for Reconstruction and Development and the International Finance Corporation had expressed their preliminary approval to participate in the capital subscription of Banque du Caire through the acquisition of minority stakes.
BDC’s net profits rose to LE16.1 billion at the end of 2025, recording an annual growth of 30 per cent thanks to improved performance across various business segments, according to the financial results announced in February.
Geneina added that the government has made considerable progress in fulfilling the commitments it made with the International Monetary Fund, particularly with regard to exchange-rate flexibility and fiscal policies, including the Central Bank of Egypt’s restraint in lending to the Ministry of Finance.
What remains, he noted, are structural reforms aimed at strengthening the role of the private sector. He pointed out that in times of war the government may also require additional financing to offset losses, such as the decline in revenues from the Suez Canal.
Geneina stressed that the advisers managing the offering have likely detected strong interest among investors during roadshows, and this has encouraged the government to proceed with the offering at this time.
He also argued that the war is unlikely to drag on until the scheduled timing of the bank’s offering due to rising inflation in the US as well as a trend in the making to increase interest rates, which are negatively affecting not only ordinary Americans but also the US government’s debt burden.
According to Geneina, these pressures could push Washington to bring the war to an end, particularly in the light of the approaching US midterm congressional elections in November. Should the situation deteriorate further, US President Donald Trump may face the risk of voters favouring Democratic candidates in the elections in protest against policies that have harmed the economy.
* A version of this article appears in print in the 19 March, 2026 edition of Al-Ahram Weekly
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