TLDR

• Egypt plans to sell a stake in state-owned United Bank through a local IPO by Q1 2025 to attract foreign investment.
• The size of the stake is unspecified, with potential sale of between 30% to 40% of United Bank's total assets of $2.18 billion.
• The IPO is part of Egypt's state-divestment program following a $57 billion global bailout to address economic crisis, subject to market conditions and regulatory approvals.

Egypt plans to sell a stake in state-owned United Bank via a local initial public offering (IPO) by the end of the first quarter of 2025, the central bank said. While the size of the stake remains unspecified, the sale is subject to market conditions and regulatory approvals.

This IPO is part of Egypt's broader effort to attract foreign investment through the sale of public assets, following a $57 billion global bailout to address its economic crisis. The government has been working on a state-divestment program, which has garnered attention from the International Monetary Fund.

Local media reported that authorities may offer between 30% and 40% of United Bank, with half through public subscription and the rest via private placement. United Bank had total assets of 106 billion pounds ($2.18 billion) as of June 2024.

Key Takeaways

Egypt's plan to sell a stake in United Bank through an IPO signals its commitment to attracting foreign investment and advancing its state-divestment program. The sale, part of broader economic reforms, could reignite investor interest in Egypt's banking sector as the nation emerges from its economic crisis. Although it has struggled to execute major sales of public assets, but progress is being made. The government is reportedly in advanced talks to sell its remaining 20% stake in Alex Bank to Italy's Intesa Sanpaolo SpA.