The Central Bank of Egypt (CBE) addressed international institutions to assess both the Arab African International Bank (AAIB) and Banque du Caire, in preparation for offering part of their shares on the Egyptian Exchange (EGX), according to a senior banker who spoke anonymously to Daily News Egypt.
CBE Governor Tarek Amer said on Saturday evening that 40% of AAIB’s shares will be offered on the EGX, as well as 20% of Banque du Caire’s. This move towards launching IPOs for these banks aims to stimulate the EGX, Amer said.
The source told Daily News Egypt that the CBE addressed several institutions, including the US-based Morgan Stanley Bank, one of the world’s leading banks in assessment and promotion of IPO operations and acquisitions.
Deputy Chairman of the Egyptian Association for Financing and Investment Studies Mohsen Adel said launching IPOs for both banks on the EGX will have a positive impact, owing to the banks’ high quality assets and their growth potential.
Time, price, and promotion are key factors for the success of both IPOs, he said.
Part of the banks’ shares should be offered on a foreign stock market, such as the London Stock Exchange, and be well-promoted to bring in hard currency to the Egyptian market, Adel said.