Cornerstone Investors Secure 63% of the First Tranche in Banque du Caire’s EGX Private Placement
In a major development for Banque du Caire's initial public offering (IPO) on the Egyptian Exchange (EGX), the bank officially announced signing investment agreements with 4 groups of qualified cornerstone investors. These agreements target acquiring an aggregate stake of up to 63% of the first tranche of the private placement—which represents approximately 95% of the total shares offered for sale. The move was executed in coordination with Banque Misr (the main shareholder) following the Financial Regulatory Authority's (FRA) approval of the offering prospectus.
Breakdown of Shares Among International Investors
The bank's disclosure detailed the allocated percentages for each cornerstone investor within the private placement's first tranche as follows:
Helikon Investments: Led the group with a 25% stake (acting as investment manager for Helikon Long Short Equity Fund Master ICAV).
Sustainable Capital Limited: Secured 18% (incorporated under the laws of Mauritius).
RWC Asset Management & Advisors: Recorded a combined stake of 11%.
Waha Investments Limited: Secured a 9% stake (incorporated under the laws of the UAE).
Through these agreements, the four institutions cover 63% of the first tranche, equivalent to 59.85% of the total shares offered for sale in Banque du Caire.
Execution Mechanisms & Final Pricing Conditions
Banque du Caire noted that the execution of purchase obligations is subject to independent conditions for each investor, linked to satisfying conditions precedent and the final offering price. The exact number of shares allocated to each party will be disclosed upon completing the offering process and announcing the final results.
Financial and Structural Highlights of the 30% Offering
This development follows the Financial Regulatory Authority's approval to register the bank's shares and adopt its prospectus. Key figures of the transaction include:
Total Offering Size: 4.575 billion shares (representing 30% of the bank's total capital).
First Tranche (Private Placement): Approx. 4.346 billion shares (95% of the offering).
Second Tranche (Public Offering): Approx. 228.75 million shares (5% of the offering).
Price Range: Set between EGP 4.82 and EGP 5.30 per share.
Target Proceeds: Indicatively estimated between EGP 22.05 billion and EGP 24.25 billion