Egypt has initiated the sale of a 30% stake in United Bank, marking its first initial public offering (IPO) in three years. This move is part of the country’s broader effort to accelerate privatization under an $8 billion economic reform program supported by the International Monetary Fund (IMF).
United Bank, nearly fully owned by Egypt’s central bank, is offering 330 million shares at a maximum price of 15.6 Egyptian pounds per share, according to a statement on the Egyptian stock exchange’s website. This valuation is slightly lower than the previously announced top price of 16.5 pounds.
The IPO is divided into two phases:
- 313.5 million shares will be offered in a private placement from now until November 25.
- The remaining 5% of shares will be available to the public between November 27 and December 3.
Privatization Push Gains Momentum
The sale of United Bank has been a long-standing goal for Egyptian authorities and reflects their commitment to reducing the state’s economic footprint. This initiative comes as the IMF reviews Egypt’s progress in implementing reforms tied to a global $57 billion bailout, which may release a $1.3 billion loan tranche.
Despite earlier setbacks, the IPO signals a renewed focus on privatization. Progress in selling state assets had been slow, even after Egypt devalued its currency by nearly 40% in March to secure international funding pledges.
Challenges and Future Sales
Previous negotiations to sell United Bank to Saudi Arabia stalled in early 2023 due to disagreements over valuation. However, the current IPO marks a significant step in Egypt’s privatization program, which includes plans to divest assets across banking, energy, and real estate sectors.
In addition to United Bank, the government aims to sell its remaining 20% stake in Alex Bank to Italy’s Intesa Sanpaolo SpA.
This IPO underscores Egypt’s efforts to stabilize its economy, attract foreign investment, and rebuild confidence in its financial markets during a challenging period of economic recovery.
