Egypt to launch first IPO in three years amid IMF-fueled privatization drive
The move comes amid a privatization drive in Egypt as part of the International Monetary Fund’s conditions to provide Cairo with an $8 billion bailout to help the North African country recover from an economic crisis.
Egypt has begun selling up to a $110 million stake in state-owned United Bank in the North African country’s first initial public offering in three years.
The move comes amid a privatization drive in Egypt, as part of the International Monetary Fund’s conditions to provide it with an $8 billion bailout to help the North African country recover from an ongoing economic crisis.
United Bank, almost entirely owned by the Central Bank of Egypt, received approval from the country’s Financial Regulatory Authority late Tuesday. United Bank is selling 330 million shares — a 30% stake — at a maximum price of 16.5 Egyptian pounds each, according to an Egyptian stock exchange filing.
The first tranche of 313.5 million shares will be executed as a private placement running from Nov. 20 to Nov. 25, the filing said. A private placement is when a company raises capital by selling a number of shares to private investors instead of public ones, such as in the case of an IPO.
