Arab Finance: Banque du Caire has set the indicative price range for its initial public offering (IPO) on the Egyptian Exchange (EGX) between EGP 4.82 and EGP 5.30 per ordinary share, according to an emailed press release.

The indicative price range implies an offering size between EGP 22.05 billion and EGP 24.25 billion and a market capitalization between EGP 73.51 billion and EGP 80.83 billion.

The final offer price will be set based on a book-building process in relation to the private offering.

The IPO will involve the sale of 4.575 billion existing shares, representing 30% of the bank’s issued share capital. Expected to consist of a secondary sale of shares by Banque Misr, the offering will comprise 4.346 billion shares allocated to qualified investors in a private offering and 228.75 million shares available for public subscription in Egypt under the public offering.

Banque du Caire appointed CI Capital Investment Banking as lead global coordinator and joint bookrunner for the offering, while EFG Hermes Promoting and Underwriting will serve as joint global coordinator and joint bookrunner.

Baker McKenzie LLP will act as legal counsel to the bank and the selling shareholder under US and English law. Meanwhile, Helmy, Hamza & Partners will serve as Egyptian legal counsel for the offering.

Book-building for the private offering will run from October 19 to 23, while subscription for the public offering will be from October 19 to 28. However, the offer price is expected to be announced on or before October 26, with trading on the stock likely to begin in early November.

Hussein Abaza, the bank's Managing Director and CEO, commented: “As one of Egypt's largest banks, Banque du Caire has built a well-established and diversified franchise across retail, corporate, SME and microfinance banking, supported by a differentiated approach focused on delivering profitable margins, disciplined risk and portfolio management, and maintaining a solid balance sheet.”

He added: “We look forward to welcoming new investors to Banque du Caire and to engaging with the market as we embark on the next phase of the Bank's development as a publicly listed institution.”

It is worth noting that the Financial Regulatory Authority (FRA) recently approved the prospectus for a 30% share offering in the Egyptian state-owned lender.