CBE governor: United Bank IPO signals strength in Egypt’s financial sector

CAIRO - 11 December 2024: Governor of the Central Bank of Egypt (CBE), Hassan Abdalla, emphasized the strategic importance of listing the United Bank of Egypt on the Egyptian Exchange as its shares began trading Tuesday. Speaking at the ceremonial bell-ringing event, Abdalla described the IPO as a transformative step for Egypt’s banking and financial sectors.

 

“This is the first bank listing on the exchange in over 25 years, marking a pivotal moment in enhancing the financial sector’s role in the national economy,” Abdalla stated. He noted that the move aligns with the CBE’s strategy to strengthen the banking industry, promote sustainable growth, and attract domestic and international investment.  

 

The Governor highlighted the broader vision behind the listing, emphasizing its potential to support the bank's growth and reinforce Egypt’s capital markets. He added that a vibrant stock market is crucial for driving private sector investment and fostering economic development.  

 

Abdalla praised the resilience of Egypt's capital markets and their ability to attract investment, stating that the IPO diversifies market offerings and positions the banking sector for further growth. “This step is not just about one bank—it signals to local and global investors that Egypt’s financial institutions are becoming stronger and more transparent,” he added.  

 

The United Bank’s public offering saw overwhelming interest, with private placement oversubscribed six times and the public tranche fifty-nine times, reflecting robust investor confidence, said Ahmed El-Sheikh, Chairman of the Egyptian Exchange (EGX).  

 

El-Sheikh applauded the professionalism and advanced infrastructure that facilitated the offering process, calling it a foundation for future IPOs. “This milestone encourages public and private institutions to leverage Egypt’s thriving capital markets,” he stated.  

 

He also emphasized the IPO’s economic impact, predicting it would energize the banking sector and attract further investments, thereby driving broader financial and economic growth.