Banque Du Caire postpones floating shares on EGX due to COVID-19

CAIRO – 12 April 2020: President of Banque Du Caire Tarek Fayed announced postponing his bank’s plan to float a stake of its shares on the Egyptian Exchange (EGX).

Fayed added on a statement to local media that this decision came due to the repercussions of the emergence of coronavirus globally and locally, and its impact on stock exchanges in all over the world.

It was planned to offer 20 to 30 percent of the bank’s shares on the stock exchange, in April, as part of the government offer program.

In Feb., Chairman of Banque Misr Mohamed Eletreby said that his bank seeks to offer a stake of up to 45 percent of Banque du Caire unit on the Egyptian Stock Exchange during the first half of 2020.

The bank also is open to sell part of the stake to a foreign investor during the initial public offering (IPO), added Eletreby.

A deal to sell Banque du Caire was cancelled in 2008 and an IPO has been postponed repeatedly over the past three years. Its chairman and CEO Tarek Fayed said in August that the bank expects to sell minority stake by early 2020.

“We want to sell a stake of up to 45 percent ... the selling will be inside Egypt, there will be no global depository receipts (GDR),” said Eletreby.

A roadshow was taking place in the United States to sell Banque du Caire shares, he added.

“It is possible that a foreign investor gets a stake... The roadshow will decide,” he said.

On another note, Banque du Caire decided on April 5 to close an entire portion of its headquarters in Nasr City, after discovering that one of its employees is infected by COVID-19.

The bank announced the commitment of all its employees to be self-isolated, in the context of the precautionary measures taken by "Banque du Caire" to confront the spread of the emerging corona epidemic.