United Bank gears up for landmark IPO on Egyptian Exchange

Oluwatosin Racheal Alabi -

Key Points

  • United Bank’s IPO will raise between EGP4.2 billion ($85 million) and EGP5.1 billion ($103 million) by offering 30% of its capital, with 95% allocated to institutional investors and 5% to retail investors.
  • The bank has achieved impressive growth, increasing its total assets from EGP72 billion ($1.5 billion) in 2021 to EGP106 billion ($2.2 billion) in mid-2024 and profits from EGP1.1 billion ($22 million) to EGP1.7 billion ($34 million) during the same period.
  • This IPO aligns with Egypt's economic reform goals, is expected to attract international interest, and will position United Bank as a key player in Egypt’s financial market.

United Bank is poised for a historic initial public offering (IPO) on the Egyptian Exchange, marking a significant step in Egypt's financial sector. The IPO will involve the sale of 330 million shares, representing 30 percent of the bank's total capital. Of these, 95 percent (313.5 million shares) will be allocated to institutional investors, while the remaining 5 percent (16.5 million shares) will be available to retail investors.

The indicative price range for the offering is between EGP12.7 and EGP15.6 per share, with the final price to be determined through a book-building process. Pending approvals from the Egyptian Financial Regulatory Authority and the Egyptian Exchange, trading is anticipated to begin by the end of the year. This IPO aligns with Egypt's broader economic reforms, aimed at bolstering the stock market and attracting foreign investment.

United Bank’s stellar growth trajectory

Under the leadership of Chairman Mohamed Hossam Ahmed Ali Abdelrehim, United Bank has achieved remarkable growth over the past three years, solidifying its reputation as a leading institution in Egypt's banking industry.

The bank's total assets have grown from EGP72 billion ($1.5 billion) in 2021 to EGP106 billion ($2.2 billion) by mid-2024, reflecting a remarkable 47 percent increase. Its profitability has also surged, with net profits climbing from EGP1.1 billion ($22 million) in 2021 to EGP1.7 billion ($34 million) in 2023.

These achievements are supported by a robust network of 68 branches and a dedicated workforce of 1,800 employees. United Bank’s operational strength and customer-centric approach have positioned it as a cornerstone of Egypt’s banking sector.

This growth story adds weight to the significance of the IPO, which is expected to inject new life into the Egyptian stock market while highlighting the bank’s strong fundamentals.

Strategic timing for an impactful IPO

The decision to list 30 percent of its shares comes at a pivotal moment, offering new investment opportunities and enhancing market liquidity. The allocation strategy, with the majority of shares reserved for institutional investors, is expected to attract substantial local and international interest.

The IPO also supports Egypt’s privatization objectives, a key pillar of its economic reform agenda. By listing on the Egyptian Exchange, United Bank aims to contribute to the development of a dynamic and competitive financial market in the country.

In December 2022, reports indicated that Saudi Arabia’s Public Investment Fund (PIF) was in advanced talks to acquire United Bank, underscoring the bank's strategic importance in the region. The IPO further elevates United Bank’s profile as a vital player in Egypt’s economic transformation.

A game-changer for Egypt’s financial sector

United Bank’s IPO is expected to invigorate the Egyptian stock exchange and attract a new wave of private investment, reinforcing its leadership role in the banking industry. This milestone not only positions the bank for future growth but also aligns with Egypt’s vision of a robust and inclusive financial system.

As United Bank prepares for public trading, the IPO symbolizes a transformative moment for the institution and a catalyst for broader economic progress. With a proven track record of growth and innovation, United Bank is poised to make a lasting impact on Egypt’s financial landscape.