Informed sources revealed that Banque du Caire postponed the offering of its shares on the Egyptian Exchange (EGX) due to the current market conditions, poor liquidity, and low trading values, as it was scheduled to be listed before the end of this year.
The sources told Daily News Egypt that Banque du Caire had completed some procedures for the restructuring process before the offering, including the acquisition of its entire shares by Banque Misr in a deal worth EGP 7bn in cooperation with the offering manager — EFG Hermes.
They also indicated that the bank is currently ready for the offering, and major Gulf and foreign institutions and funds are interested in the private offering, however, the unfavourable market conditions prevented it from being completed in the current year.
Last April, Banque du Caire announced the implementation of a series of high-volume deals on its shares for more than 1.125bn shares valued at about EGP 6.975bn.
The sources pointed out that the postponement came until market conditions improved to ensure a fair valuation of the bank’s shares and to achieve the main objective of the offering, which is reviving trading on the EGX.
The bank was planning to offer from 20% to 30% of its shares on the stock exchange in April 2020 before the outbreak of the coronavirus pandemic in Egypt, after which the offering was postponed.
Furthermore, the bank’s latest financial indicators showed that its net profit exceeded EGP 0.8bn at the end of March 2022, and its net income from returns rose to EGP 2.8bn, compared to EGP 2.5bn at the end of the first quarter (1Q) of 2021 — a growth rate of 12% — while profits before taxes recorded about EGP 1.4bn.
