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Egypt has begun the sale of a stake worth up to $104m in United Bank, said to be the country's first initial public offering (IPO) since 2021.
This move is a key component of a privatisation programme supported by the International Monetary Fund (IMF).
United Bank, which is predominantly owned by Egypt's central bank, is offering 330 million shares, equating to a 30% stake, at a maximum price of 15.6 Egyptian pounds per share, as per the announcement on the stock exchange's website on Wednesday.
The IPO process will be initiated with a private placement of 313.5 million shares, available until 25 November, reported Bloomberg.
The remaining 5% of shares are set to be offered to the general public from 27 November to 3 December.
The sale of United Bank shares is a long-standing objective of the Egyptian authorities and is indicative of renewed efforts to reduce state involvement in the economy.
The timing coincides with the IMF's review of Egypt's adherence to an expanded $8bn reform programme, which could lead to the release of a $1.3bn loan instalment.
Earlier in 2023, Egypt's government disclosed plans to divest assets across various sectors, including banking, energy, and real estate, with over two dozen assets identified for potential investor acquisition.
Despite the devaluation of the Egyptian pound by nearly 40% in March, which facilitated a series of funding commitments as part of a $57bn global bailout, significant asset sales had not materialised until now.
Previously, Egyptian officials engaged in negotiations with Saudi Arabia regarding the sale of United Bank, but talks reached an impasse early in 2023 due to valuation differences.
Additionally, the government is looking to offload its residual 20% stake in Alex Bank to Intesa Sanpaolo.
"Egypt launches United Bank IPO in IMF-backed sale" was originally created and published by Retail Banker International, a GlobalData owned brand.
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