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End of the private offering of United Bank
The institutional offering for Egyptian “United Bank” shares was covered by approximately 6 times, and the final price was set at 13.85 pounds per share, according to a bank statement published in newspapers on Wednesday.
The bank, owned by the Central Bank of Egypt, began a private offering of 313.5 million shares last Wednesday until today, Monday, while the public offering to individuals of about 16.5 million shares begins today, Wednesday, and continues until the third of next December.
The United Bank of Egypt is heading to raise up to 4.6 billion pounds ($92.14 million) from offering 30% of its shares after determining the final price of the offering, which came within the predetermined range.
The bank's net income reached 1.7 billion pounds in the first half of this year, while bad loans amounted to 600 million pounds, and its total assets reached 107 billion pounds. According to its website, United Bank, which was founded in 2006, has 68 branches nationwide and more than 200 ATMs.
Offering the government's share in the bank will attract new investors to the Egyptian market, and more money, especially since the offering is linked to the banking sector, which is considered among the most developed and stable sectors. Before the current offering, the Central Bank of Egypt sold the United Bank more than once over the past years, without reaching an agreement with investors. CI Capital is acting as the offering manager, while Helmy Khozam & Partners and the Cairo office of Baker & McKenzie are acting as legal advisors to the offering.
Earlier this month, the Egyptian government identified sectors targeted for IPOs during the current fiscal year, and included sectors including banks, airports, medical preparations, plastics, glass, and petrochemicals. The government expected to conduct 15 future offerings to entities in various sectors, in addition to entities whose private offering process is being completed during the coming period, until the end of the current fiscal year.
Disclaimer: The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.
