Banque du Caire IPO prospectus coming before June

Good morning, wonderful people. We hope the weekend treated you well. We’re going to take a moment to remember one of our heroes this morning before we get underway:

The world belongs to optimists. Forget about the fragile ceasefire in the Gulf, about the two Indian ships that took fire in Hormuz late yesterday, and about the conflicting statements coming out of both the Oval Office and Tehran. Forget about when we can all declare this “over” — just try this morning to be a little bit … optimistic.

Because the world belongs to optimists. To folks in their 50s who have the guts to bin their careers and start something new. To people who, in taking a chance, give untold numbers of other folks the opportunity to build better lives.

If you work in finance anywhere in emerging markets — hell, if you’re reading EnterpriseAM this morning — odds are good you owe a debt of gratitude to Mark Mobius, who died in Singapore late last week at age 89.

Mark was an optimist — the guy who “proved” emerging markets as a globally investable asset class. If you’re working today in EM as a founder, investor, IR professional, C-suite — hell, as a business journalist? Have a thought for Mark, who led a revolution in how capital allocators from Wall Street to The City and beyond look at emerging and frontier economies. When he joined Franklin Templeton’s emerging markets group back in the 1980s, it had about USD 100 mn in AUM. When he retired from the firm — but not from investing — in 2018, his fund was running more than USD 40 bn across 70 countries.

Curious, optimistic, indefatigable — it wasn’t so much that Mark set out to develop a boots on the ground, meet face-to-face with the folks running the businesses approach to EM investing, that approach was simply the embodiment of who he was.

That just wasn’t what was done back in the 1980s or even 1990s. Turning up in Cairo — or Dubai, Hanoi, or São Paulo — as a Wall Street fund manager was odd enough in that even a 1995 New York Times profile had to explain it to its readers. He didn’t set out to chase big names folks already knew, the reporter wrote: “Mr. Mobius focuses on the next tier of companies. After looking at various markets and studying stock valuations and trading patterns, he and his analysts meet with a prospective company’s management to talk about its prospects.”

Do you hate what you’re doing right now? Are just itching for a change? Think about Mark’s career trajectory: He didn’t back into fund management until he was in his 50s, having earlier made a living playing piano, teaching communications, hawking Snoopy-branded merch in Asia, and running his own financial research firm before eventually getting into brokerage.

Worried about aging? Mark retired from Templeton in 2018. From Mobius Capital Partners, the firm he set up after that, in 2023. And then promptly started another fund. While tromping the globe, staying active on X, and writing a Substack, of all bloody things.

Words to live by: “I get asked almost every single day what motivates me to keep working and stay active, and my answer is simple: Nothing is impossible if you stop putting limits on yourself,” he wrote on his 88th birthday, adding, “One must always take calculated risks in life, but let me say this: The world belongs to optimists.”

Read Mark’s obituary here on his website or in the Financial Times, Wall Street Journal, and New York Times.

Tap or click here to listen to the 10-minute version of this morning’s issue — Morning Drive is out Sunday-Thursday at 6:15am and is perfect to listen to if you’re in a rush, behind the wheel, or need something to listen to while you suit up for a day at the office.)

Happening today

AmCham Egypt is launching its annual Doorknock Mission to Washington,DC today and we’ll be there reporting daily. The mission gathers a 20-member delegation of senior business leaders to engage the US Administration, Congress, and international financial institutions. Amid global supply chain shifts and domestic economic reforms, key priorities include positioning the country as a hub for renewable energy, digital trade, and alternative manufacturing.

Look for our special coverage from Washington in EnterpriseAM issues this week.

Banque du Caire’s prospectus is weeks away

Banque du Caire should be on track to release its IPO prospectus before June, the head of cabinet’s State-Owned Enterprises Unit, Hashem El Sayed, tells EnterpriseAM.

We could see 30-40% stake in BdC up for grabs in what would be the most significant IPO Egypt has seen in years. We first broke the news back in December. The bank is led by Hussein Abaza, well-known to global investors from his time leading CIB, and taking it to market this year would be a clear signal to the IMF that the state is taking seriously demands that it step back from direct competition with the private sector.

We’re hoping officials will green-light the offering of as much as 49% of the bank — the biggest stake that can be offered under current regulations. Bankers found heavy appetite on a global road show to prospective cornerstone investors before the outbreak of the war in the Gulf.

The government is also looking to get the IPO of Misr Life on the road before the end of June, with investment banks managing the offering expected to be announced within the next couple of weeks, Investment Minister Mohamed Farid has said. It plans to follow BdC and Misr Life with as many as two additional stake sales in the second half of the year.

The wildcard: Investor appetite, which remains very much unproven amid all that’s been taking place in the Gulf.

El Sayed tells us that his unit is also working on temporary listings of up to 30 companies on the EGX before the end of June, including 20 state-owned firms and ten petroleum companies, as part of a first phase aimed at expanding the pool of assets available for future offerings and in a bid to improve governance. The list includes companies such as El Nasr Housing and Development, Sinai Manganese, and firms under the construction and tourism holding companies.

Restructuring assets ahead of potential sales is also a priority, he said, suggesting that Ghazl El Mahalla textiles giant could be split into two —one with upgraded factories that could be listed or sold to a strategic investor, and another to undergo longer term restructuring. As many as 40 companies are being prepared for a phased transfer to the Sovereign Fund of Egypt, El Sayed added.

REMEMBER- The government is now targeting around USD 4.5 bn in privatization proceeds over the next three years, we reported last week, stepping back from earlier ambitions to raise USD 6 bn in a single fiscal year in view of the war. The government’s focus has shifted toward bringing in private sector participation rather than maximizing receipts, as global uncertainties and regional tensions weigh on investor appetite.

Fresh inflows push the USD to below EGP 52

The EGP extended its gains against the USD during Thursday’s trading to hover just below the EGP 52 mark. The greenback traded at EGP 51.77 (buy) and EGP 51.87 (sell) at the National Bank of Egypt and Banque Misr. Interbank volumes hit USD 534 mn on Thursday, a banking source told EnterpriseAM.

The drivers: The currency’s recent momentum can be traced back to robust remittance inflows, renewed foreign appetite for local secondary debt — including USD 450 mn in T-bills during Wednesday’s session and another USD 1 bn on Thursday — and stronger foreign reserves (USD 52.8 bn), alongside supportive signals from S&P, Ahmed Shawky, member of the Egyptian Society for Political Economy, Statistics and Legislation, explains. The flexible exchange rate regime has been key to “restoring FX liquidity and narrowing the gap between supply and demand,” he notes.

Looking ahead: “The EGP is likely maintaining a gradual improvement trajectory, supported by sustained hot money inflows and relative monetary policy stability,” former Banque Misr Deputy Chair Sahar El Damaty tells us. However, she cautioned that “any escalation in regional tensions or a renewed spike in oil prices could cap the pace of gains and reintroduce pressure on the foreign exchange market.”

No rolling blackouts in the cards

No 4-hour blackouts, cabinet says: Cabinet denied circulating rumors claiming that we’re in for 4 hours of power cuts every day starting next month. The Madbouly cabinet also denied that a decision has been made to set the commercial curfew at 10pm, from 11pm at the moment. Current energy rationing remains unchanged, with no new official instructions issued, the cabinet said.

Could we be looking at a blackout-free summer? The Oil Ministry affirmed that it is “fully prepared to secure energy needs during the summer,” according to a statement. The ministry is accelerating the implementation of the Meleiha field expansions to increase gas production before 30 June.

Data point

1.6 mn — that’s the number of visitors to the Grand Egyptian Museum (GEM) during 1Q 2026, according to a government official who spoke to Asharq Business. Egypt previously targeted around 5 mn annual visitors for the museum.

Hiking prices: Over the strong turnaround, the museum will increase ticket prices starting November, raising entry fees by EGP 20 for Egyptians and USD 5 for foreign visitors, as authorities look to capitalize on demand and boost revenues, according to a Tourism Ministry statement.

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WEATHER- Spring conditions are back in Cairo today, with a high of 27°C and a low of 16°C, according to our favorite weather app. Expect the mercury to remain cool (a high of 26°C) over the next two days.

It’s several degrees lower in Alexandria, with a high of 22°C and a low of 14°C.

The big story abroad

It’s another morning with the regional war dominating the front pages. A short-lived de-escalation saw Iran announce the reopening of the Strait of Hormuz on Friday, only to close it hours later in the face of tankers — with reports of shots fired at ships, and tens of tankers sent back. Tehran pointed the finger at Washington for continuing to blockade its ports, in violation of the ceasefire agreement between the two sides.

The American response: US President Donald Trump said that his administration was having "very good conversations" with Tehran, and that the Islamic Republic could not blackmail the US.

Five LNG tankers bound to cross the strait had to halt their voyages after Tehran issued warnings, according to ship-tracking data by Bloomberg. And two Indian-flagged vessels carrying crude oil were under fire while traversing the waterway yesterday.

The ongoing conflict has stalled over USD 50 bn in crude oil production in just 50 days, the impact of which is likely to be felt for months or even years to come, according to analysts and calculations made by Reuters. This is equivalent to removing more than 500 mn barrels of crude and condensate from the market, according to Kpler data.

Meanwhile, Trump announced that Israel will no longer strike Lebanon,claiming that the Israelis “are PROHIBITED from doing so by the USA,” in a TruthSocial post on Friday. This followed the announcement of a 10-day truce in Lebanon after direct negotiations with Israeli officials, which prompted Tehran to reopen the strait as long as the ceasefire holds.

The Madbouly government welcomed the news of the ceasefire calling it an important step towards the de-escalation of regional tensions and halting Israeli military operations in Lebanon.