.jpg)
2 hours ago
1
Egypt started selling a stake of as much as $104 million in United Bank, the country’s first initial public offering in three years as it presses ahead with a privatization program being encouraged by the International Monetary Fund.
Author of the article:
Bloomberg News
Mirette Magdy
Published Nov 20, 2024 • 1 minute read
(Bloomberg) — Egypt started selling a stake of as much as $104 million in United Bank, the country’s first initial public offering in three years as it presses ahead with a privatization program being encouraged by the International Monetary Fund.
United Bank, almost entirely owned by Egypt’s central bank, is selling 330 million shares — a 30% stake — at a maximum of 15.6 pounds per share, according to a statement on the stock exchange website on Wednesday. That’s slightly lower than the top end of 16.5 pounds announced the day before.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The first tranche of 313.5 million shares will be offered as a private placement running through Nov. 25. The final 5% of the shares will be sold to the wider public from Nov. 27 to Dec. 3.
Selling part of United Bank — a goal of Egyptian authorities for almost a decade — signals fresh movement in the country’s much-watched pledge to curb the role of the state in the economy. It comes as the IMF discusses Egypt’s progress in enacting an expanded $8 billion reform program, in a periodic review that may unlock a $1.3 billion loan tranche.
Mired in economic crisis in early 2023, Egypt’s government announced an initial list of more than two dozen assets it planned to offer to investors, in sectors ranging from banking to energy and real estate.
Progress, however, has been slow. Even after authorities let the pound weaken almost 40% in March — helping Egypt secure a wave of funding pledges as part of a global $57 billion bailout — there hadn’t been a significant asset sale until now.
Egyptian authorities previously held discussions with Saudi Arabia over its potential purchase of United Bank. Negotiations stalled in early 2023 amid a disagreement over how to value the transaction.
The government is also seeking to sell its remaining 20% stake in another lender, Alex Bank, to Intesa Sanpaolo SpA.
(Updates with new pricing, details on asset-sale plans.)
Article content
English (US)