Egypt to sell United Bank stake in IPO on local bourse

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Egypt’s central bank said on Sunday that it will sell a stake in state-owned United Bank through an initial public offering (IPO) on the local exchange, as the North African nation presses ahead with plans to attract foreign investment through the sale of public assets.

The Central Bank of Egypt (CBE) said in a statement that it was working on obtaining approvals from the Financial Regulatory Authority and the Egyptian Stock Exchange.

The IPO will take place before the end of the first quarter of 2025, “subject to market conditions and the timely receipt of the relevant regulatory approvals.” CBE did not specify the size of the stake.

United Bank increased its total assets to $2.2bn (EGP106bn) at the end of June from EGP72bn in 2021, the statement said. Its net profit rose to EGP1.74bn in 2023 from EGP1.15bn two years earlier.

The bank has 68 branches, 1,800 employees, and 225 ATMs. United Bank is one of 32 companies that the government plans to sell stakes in, including Banque du Caire, Arab African International Bank, and the Bank of Alexandria (Alex Bank).

Saudi Arabia’s Public Investment Fund (PIF) previously showed some interest in buying United Bank. However, the kingdom reportedly shelved the deal in February 2023 because of a disagreement with the Egyptian authorities over its valuation.

Egypt is reportedly in advanced talks to sell the government’s remaining stake in Alex Bank to Italy’s Intesa Sanpaolo. An agreement would see the Italian lender, which already owns 80 per cent of the Egypt-based bank, buy the remaining 20 per cent and take complete ownership.

The deals will be closely watched by investors and the International Monetary Fund as a sign Egypt’s new government is committed to a state-divestment program.

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