Banque du Caire opens its IPO books at EGP 4.82-5.30 a share, with room to grow to 45%

Subscriptions for Banque du Caire’s IPO open today, a day after the Financial Regulatory Authority (FRA) approved the state-owned lender’s prospectus (pdf), the regulator said in a statement (pdf). Institutional investors have until Friday, 23 October, to place their orders, while the retail book will remain open until Wednesday, 28 October. The final price will be announced on Monday, 26 October, and the stock is expected to hit the EGX in November, according to the ITF.

The IPO could raise as much as EGP 36.4 bn (c. USD 680 mn) if the government opts for a bigger sale. BdC is guiding on a price range of EGP 4.82-5.30 per share. That puts the base 30% stake sale at EGP 22.1-24.2 bn (c. USD 413-452 mn) and values the bank at EGP 73.5-80-8 bn (c. USD 1.37-1.51 bn) by our math. The prospectus also allows Banque Misr, BdC’s selling shareholder, to offer another 2.29 bn shares depending on demand, taking the total stake on offer to 45% and lifting proceeds by roughly 50%.

Qualified investors get 95% of the offering. The private tranche puts 4.35 bn shares (28.5% of the bank) on offer to qualified investors in Egypt and abroad, including financial institutions and high-net-worth individuals. The remaining 228.75 mn shares (1.5% of the bank) are open to the public in Egypt and would be worth up to EGP 1.2 bn (c. USD 23 mn) at the top of the range.

The bigger float has been on the table for a while. BdC’s shareholders approved the option to upsize back in April, according to the FRA’s statement. Earlier this week, a government official told us the banks running the offering had recommended going to 45% after the roadshows drew demand from investors around the world, with the call resting with Banque Misr and the Central Bank of Egypt. The prospectus doesn’t settle the question, but it sets a deadline: any increase has to be announced at least three days before the retail book closes.

FOR REFERENCE- BdC’s offering is around three to four-and-a-half times the size of MNT-Halan’s EGP 7.84 bn IPO, by our math, which makes it a much bigger test of foreign institutional appetite. We think this is the offering EFG Holding CEO Karim Awad was referring to when he told the EnterpriseAM Forum earlier this month that an upcoming IPO could be among Egypt’s largest in USD terms in 15-20 years. Awad declined to name the issuer but described a sizable freefloat and called the listing “a true test of large foreign investors coming back into the stock market.” EFG Hermes is a joint global coordinator on BdC’s offering. The stakes go beyond the IPO itself: Awad expects foreign investors who make money on a transaction of this scale to start putting capital into other EGX stocks too.

Priced at fair value

The top of the range is the fair value. The FRA based its approval on a fair value study by financial advisor Baker Tilly, which set the share at EGP 5.30, with the final price to be set by the private placement results and the bookbuild. That’s in line with the EGP 80-80.5 bn valuation reported in September, and the bottom of the range is a c. 9% discount to it. The range also came in higher than expected. On 2025 net income of EGP 16.07 bn, the range works out to 4.6-5x earnings and 1.1-1.2x end-June equity, by our math.

The bank comes to market with more capital behind it too: BdC’s capital adequacy ratio rose to 22.06% at end-2025 from 17.14% a year earlier, according to the audited financial statements in the prospectus. The FRA approved a capital increase in December that raised BdC’s issued capital to EGP 30.5 bn from EGP 20.5 bn through 5 bn new shares at EGP 2 par, taking the share count to the 15.25 bn the offering is built on. The shares have been temporarily listed on the EGX since February 2017.

What investors are buying

Income grew faster than lending: BdC’s 2025 net income rose 31% to EGP 16.07 bn, according to its audited consolidated financial statements (pdf). Net interest income grew 22% and fees 10%, while loans rose 16% to EGP 222 bn and deposits 14% to EGP 404.5 bn. Two costs grew faster than revenue: administrative expenses rose 25% and credit-loss provisions 38%. The momentum carried into this year, with a net income of EGP 8.9 bn in 1H 2026, an annualized return on equity of 27.6% and a net interest margin of 7.4%, according to the ITF.

Capital is stronger, and asset quality is mixed: The capital adequacy ratio rose to 22.06% at end-2025 from 17.14% a year earlier, with risk-weighted assets broadly flat, the statements show. Credit-impaired (Stage 3) loans fell to 3.99% of the book from 4.97%. Loans flagged for rising credit risk (Stage 2) rose to 18.08% from 16.85%.

One more gate before trading

The Cabinet still has to sign off: Before its shares can trade, BdC must show proof of Cabinet approval under Law 170 of 2025, the FRA said. It must also meet the EGX’s final listing requirements, including the share of stock offered, the freefloat, and the minimum number of shareholders.

ICYMI- MNT-Halan set a high bar. Its private placement closed 11.2x oversubscribed, with foreign institutions taking most of the book and more than 300 investors bidding from across the GCC, the UK, France, Switzerland, South Africa, and Egypt. Its retail tranche closed 43.6x covered on the final day, and the shares debut tomorrow, the day after BdC’s book opens. Investors are already paying for the run of offerings.

It’s already the EGX’s busiest IPO year in a while, and the queue is getting longer: BdC is the bourse’s fourth IPO of 2026, following premium grocer Gourmet in February, energy solutions firm Korra Energi in May, and MNT-Halan this month. That’s double 2024’s total, and the two 4Q floats are the biggest the EGX has seen in years. Behind them, state-backed insurer Misr Life is now expected in December, and EFG-backed Egypt Education Platform within three months. A handful of petroleum companies are lined up too, with Enppi likely the first oil and gas name to go, probably in 1Q 2027, a senior government official told us in August. The EGX is still short of the at least eight offerings it expected this year, and a strong BdC book would make it easier to sell what’s coming next.

ZOOMING OUT- Egypt is selling while the Gulf is on hold. Gulf IPOs have raised slightly more than USD 1 bn so far this year, down from nearly USD 6 bn at the same point in 2025, Bloomberg reported last week, citing its own data. BdC CEO Hussein Abaza told the business news service that the regional turmoil has shown Egypt to be “the most stable economy,” and that investors from Africa, North America, Europe, and the Gulf have expressed interest in the offering.

ADVISORS- CI Capital is lead global coordinator and joint bookrunner, while EFG Hermes is joint global coordinator and joint bookrunner. Baker McKenzie is advising the BdC and its parent on US and English law, while Helmy, Hamza, & Partners, a Baker McKenzie member firm, is counsel on matters of Egyptian law. Enterprise Advisory is investor relations advisor.