Attention, institutional investors: United Bank will kick off its planned offering on the EGX today, with the bank offering shares for up to EGP 15.60 a pop in a private placement, according to a statement from the bourse. The total offering could see the bank raise up to EGP 5.1 bn by floating 330 mn of its shares — equivalent to a 30% stake.

ICYMI- The bank had set an indicative price range of EGP 12.70-15.60 per share, while the independent financial advisor put the share’s fair value at EGP 15.73.

The breakdown: Starting today, institutional investors will be able to buy 313.5 mn shares — 95% of those on offer — until 25 November. The remaining 16.5 mn share trance for retail investors will be up for grabs between 27 November and 3 December.

The bank has been in the government’s privatization crosshairs since at least 2017: The CBE — which owns 99.9% of the bank — first announced its plan to sell the bank in 2017, but the Covid pandemic put the plans on ice. United Bank was also listed in the lineup of state companies and assets earmarked for privatization in the rebooted privatization program unveiled in February 2023.

This will mark the second IPO of the year, after Act Financial offered a 32% stake on EGX in July and became the first company to conduct a full IPO in the Egyptian bourse since 2022.

Advisors: CI Capital will act as sole global coordinator and bookrunner for the offering, while Helmy, Hamza & Partners — Baker McKenzie’s Cairo office — has been appointed as counsel. Baker Tilly is independent financial advisor and Ernst & Young (EY) is auditor.

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