Egypt's Banque du Caire shares debut in long-delayed state asset sale

Egypt's Banque du Caire rose as much ​as 7% in its stock market ​debut on Monday after the ‌government sold ​a 45% stake, completing a landmark state asset sale that had been delayed for nearly two decades. Reducing the state's ‌role in the economy is a key pillar of Egypt's $8 billion loan programme with the International Monetary Fund, which is due to end next month.

The government announced plans to privatise ‌Banque du Caire, Egypt's sixth-largest bank by assets, in 2007, but the move was delayed ‌by the global financial crisis and repeatedly postponed thereafter. The listing comprised 45% of the bank's shares at 5.30 Egyptian pounds apiece, valuing the lender at 20.5 billion pounds ($370 million). The stock rose as high as ⁠5.68 pounds ​in early trade before ⁠paring some gains.

The sale showed the state was "very serious" about continuing to offer state assets for sale ⁠despite challenging global conditions, Prime Minister Mostafa Madbouly said during a ceremonial bell-ringing at the Egyptian stock ​exchange in Cairo. Higher fuel prices, exacerbated by the US-Israeli war with Iran, have strained ⁠Egypt's finances and helped keep inflation in double digits. Regional conflict and uncertainty have also weighed on the ⁠stock ​market in recent weeks.

Even so, Egypt last month recorded its largest initial public offering in at least five years when lending and payments company MNT-Halan sold a fifth ⁠of its shares. Banque du Caire's listing forms part of a broader privatisation drive that also ⁠includes planned listings ⁠of companies in the petroleum and development sectors.

The IMF has repeatedly pointed to slower-than-expected progress in creating more room for private sector ‌investment, including through ‌divestment of state assets.