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Egypt Wraps Up United Bank Offering as Asset-Sale Plan Advances

IMF branding. Photographer: Mandel Ngan/AFP/Getty Images (Mandel Ngan/Photographer: Mandel Ngan/AFP/Ge)

(Bloomberg) -- Egypt concluded its initial public offering of 30% of United Bank, a step forward in an International Monetary Fund-backed drive to sell off state assets and boost the economy.

The sale of 330 million shares raised about 4.57 billion Egyptian pounds ($91.9 million), according to a statement Wednesday on Egypt’s stock exchange. 

The offering was divided into a private placement of 95% of shares in late November and a retail offering of the remainder that wrapped up Tuesday. Shares sold for 13.85 pounds apiece in both.

Selling part of United Bank — a goal of Egypt for almost a decade — signals fresh movement in a pledge to curb the role of the state in the economy. It’s a key component of an expanded $8 billion IMF loan program the government secured in March, after devaluing its currency for the fourth time since early 2022 in a bid to end a crippling foreign-currency shortage.

United Bank was on a list of more than 30 assets the government in early 2023 said would be offered to investors. Progress had been slow, with the IPO representing the first major stake sale since the pound plunged about 40% earlier this year.

Officials recently said they’re re-evaluating the assets being offered, with the possibility of adding new companies or sectors.

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