United Bank of Egypt to list 30-percent stake on EGX in Q4, advancing financial inclusion and private sector investment

Oluwatosin Racheal Alabi -
Key Points
  • The United Bank of Egypt plans to list 30% of its shares on the Egyptian Exchange (EGX) by late 2024.
  • CI Capital will manage the offering, with legal support from Baker McKenzie’s Cairo office.
  • This listing is expected to boost activity on the EGX and aligns with Egypt’s push to attract more private investment.

The United Bank of Egypt is set to list a 30-percent stake on the Egyptian Exchange (EGX) by the end of 2024, marking a significant step for Egypt’s banking sector and the government’s broader strategy to attract investment and invigorate private sector activity. Partially owned by the Central Bank of Egypt, The United Bank plays a central role in advancing financial inclusion, which has become an economic priority for the country. The bank will offer around 330 million shares in this secondary offering, coinciding with a wave of high-profile IPOs that underscore the EGX’s rising role as a destination for local and foreign investment.

The offering is planned for the fourth quarter of 2024, following provisional approval from the EGX’s Listing Committee, which has registered 1.1 billion of The United Bank’s shares at a nominal value of EGP 5 each. The bank’s shares were added to the EGX's banks database under the ticker symbol UBEE.CA on Oct. 24, a pivotal step in its journey to public listing. This initiative aims to strengthen Egypt’s financial markets and attract new investment into state-linked assets, broadening the participation of private sector stakeholders in the national economy.

The transaction is being managed by CI Capital, a leading Egyptian investment bank appointed as the bookrunner. CI Capital will focus on structuring the offering to maximize its market impact, seeking to attract substantial demand from both local and international investors. Helmy, Hamza & Partners, Baker McKenzie’s Cairo office, is overseeing the legal aspects, ensuring compliance with Egyptian and global financial regulations. The combined expertise of CI Capital and Baker McKenzie is expected to provide a strong foundation for the listing process, enhancing transparency and investor confidence.

This listing comes as Egypt intensifies efforts to attract foreign capital and expand its capital markets, a critical component of the government’s privatization strategy aimed at stimulating economic growth. The Egyptian government has placed a strong focus on opening up state-affiliated companies to public investment, a move that analysts predict will boost market liquidity and trading volume on the EGX. If successful, The United Bank’s IPO could set a precedent, encouraging other Egyptian banks to consider public offerings, which would bring more transparency to the banking sector and diversify the investment options available to both domestic and international investors.

As The United Bank completes regulatory reviews and investor outreach for the Q4 listing, anticipation is building around its EGX debut. Industry experts see The United Bank’s listing as a potential driver of increased activity on the EGX, with many viewing it as a bellwether for Egypt’s ongoing economic reforms and privatization initiatives. The performance of UBEE.CA is expected to be closely watched as a reflection of investor sentiment toward Egypt’s broader economic strategy, which aims to establish the country as a promising emerging market with ample opportunities for investment.