Egypt’s government plans to sell a stake in United Bank via an initial public offering (IPO) during the first quarter of 2025. The move comes as Egypt pushes ahead with its privatization program under reforms backed by the International Monetary Fund (IMF).
According to a September statement, the Central Bank of Egypt (CBE) sought the necessary approvals, including consent from Egypt’s Financial Regulatory Authority and the Egyptian Stock Exchange.
United Bank’s assets increased to 106 billion Egyptian pounds (EGP)—roughly $2.2 billion—at the end of June, up from EGP72 billion in 2021. Additionally, profits reached EGP1.74 billion at the end of 2023 from EGP1.15 billion in 2021, the CBE said. United Bank operates a network of 68 branches, maintains 225 ATMs and employs 1,800 staff. It also provides Islamic banking services to its customer base.
The CBE did not disclose the value of the intended IPO, and cautioned that the sale is subject to market conditions and relevant regulatory approvals. The IPO is an integral part of a new economic strategy, says Ahmed Negm, head of Market Research for MENA at broker XS.com. Negm said, “The sale is part of a broader asset sale program to address foreign currency shortages and boost the economy.”
Still, the Middle East is on a precipice amid fears that Israel’s incursion into Lebanon could morph into a wider regional conflict and affect investor confidence.
Egypt hopes to generate $1 billion from sales of state-owned companies this year, and $1.5 billion in 2025, Hala el Saeed, Egypt’s then minister of planning and economic development, said in April. This year’s forecast is lower than the earlier headline figure of $6.5 billion that Egypt’s finance minister indicated in February. The International Monetary Fund also appears to have moderated its outlook for proceeds from privatization as a result of the war in Gaza. In March, the International Monetary Fund increased a current loan agreement with Egypt by $5 billion to $8 billion. It previously negotiated a $3 billion, 46-month Extended Fund Facility with Egypt in 2022.