Egypt Launches Initial Public Offering for United Bank

Egypt has initiated the sale of a stake in United Bank, valued at up to $104 million, marking its first initial public offering (IPO) since 2021. This move is part of a larger privatization effort supported by the International Monetary Fund (IMF) and reflects the government's goal to reduce state involvement in the economy. The sale involves 330 million shares, representing a 30% stake, with a private placement of 313.5 million shares available until November 25, followed by a public offering for the remaining 5% from November 27 to December 3. The pricing of the shares is set between 12.70 and 15.60 Egyptian pounds, with the aim of strengthening the bank's capital amid competitive pressures. This IPO is a significant step as the government seeks to privatize various state-owned assets, following a period of economic turmoil and currency devaluation in early 2023. Previous discussions with Saudi Arabia regarding the purchase of United Bank had stalled earlier this year over valuation disagreements.