Banque du Caire Offer Values the Bank at Up to 80.8 Billion Pounds, or 1.24 Times Book
The sale of 30 percent of Banque du Caire, cleared by the regulator on 18 October, carries an indicative price of 4.82 to 5.30 pounds a share, a range that values the whole bank at 73.5 billion to 80.8 billion pounds, on our calculation, or 1.13 to 1.24 times its book equity at the end of June. The state-owned lender comes to market after lifting net profit 30 percent to 16.13 billion pounds in 2025 and 15 percent year on year in the first half of 2026.
The Range and the Timetable
The Financial Regulatory Authority approved the prospectus on Sunday 18 October, the Egyptian Cabinet said, for shares that were provisionally listed on 8 February 2017. The prospectus covers up to 4.575 billion existing shares in a secondary offering at an indicative price of 4.82 to 5.30 pounds each, with 95 percent for qualified investors in a private placement and 5 percent for the public, or 4.346 billion and 228.75 million shares, on our calculation. That count is exactly 30 percent of the 15.25 billion shares in issue at the end of June, each with a par value of 2 pounds, according to the bank’s first-half accounts. Buy orders are taken from 19 to 23 October, and the final price is to be set by book building on investor demand and announced by 26 October at the latest. The Egyptian Exchange will open its private deals market, known as OPR, to register the orders, and the public subscription closes on 28 October, CNBC reported, adding that the bank expects trading to start in November, subject to regulatory approvals.
At the top of the range, 4.575 billion shares at 5.30 pounds come to 24.25 billion pounds, in what would be Egypt’s largest initial public offering in years, worth up to 454 million dollars, Bloomberg reported. The shares on offer are existing shares owned by Banque Misr, the bank’s parent, as Banque du Caire said when it announced its plan to float this month, so the proceeds go to the seller rather than to the bank, on our reading. At the floor, the offer would raise 22.05 billion pounds, and the top price sits 9.96 percent above the floor and at 2.65 times par, on our calculation.
Against total equity of 65.23 billion pounds at 30 June, the range values the bank’s 15.25 billion shares at 1.13 to 1.24 times book. Against the 17.26 billion pounds the bank earned in the 12 months to June, it is 4.26 to 4.68 times earnings, an earnings yield of 23.5 percent at the floor and 21.4 percent at the top, on our calculation. For comparison, the bank reported an annualised return on average equity of 27.2 percent for the first half and 30.6 percent for 2025.
What the 4.82 to 5.30 pound range implies
| Measure | At EGP 4.82 | At EGP 5.30 |
|---|---|---|
| Offer value, 30% stake | EGP 22.05bn | EGP 24.25bn |
| Offer value, 45% stake | EGP 33.08bn | EGP 36.37bn |
| Value of the whole bank | EGP 73.5bn | EGP 80.8bn |
| Price to book, June 2026 | 1.13x | 1.24x |
| Price to 12 month profit | 4.26x | 4.68x |
| Earnings yield | 23.5% | 21.4% |
All figures are our calculation from the indicative range, the 4.575 billion shares offered and the 15.25 billion shares in issue; the 45 percent row uses 6.8625 billion shares. Book value is total equity of 65,234 million pounds at 30 June 2026. The 12 month profit is 2025 profit of 16,133 million pounds plus first-half 2026 profit of 8,587 million, less first-half 2025 profit of 7,460 million, on the bank’s standalone basis.
A Possible Widening to 45 Percent
In a filing to the exchange on Sunday, the bank said it was considering raising the stake on offer to 45 percent, depending on demand during the subscription, Bloomberg reported, adding that the sale follows this month’s offering by MNT-Halan, in which both the private and the public subscriptions were oversubscribed. A 45 percent sale would mean 6.8625 billion shares and proceeds of 33.08 billion to 36.37 billion pounds across the range, on our calculation.
Chief Executive Officer Hussein Abaza said in an interview on 13 October that investors from Africa, North America, Europe and the Gulf had expressed interest in the sale, and that a successful offering could speed up the government’s privatisation programme. The offering sits within the government’s programme of state company sales, which aims to widen private sector participation and strengthen corporate governance, said Hashem El-Sayed, Assistant to the Prime Minister and head of the State-Owned Companies Unit.
The Earnings Behind the Price
The profit base that the multiples rest on has grown quickly. Operating income rose 20 percent to 41.50 billion pounds in 2025, with net interest income up 21 percent to 34.14 billion pounds and net fee income up 10 percent to 6.32 billion. Profit after tax reached 16.13 billion pounds, from 12.37 billion in 2024. The 12 months to June 2026 then added another 7.0 percent, taking trailing profit to 17.26 billion pounds, or 1.13 pounds a share, on our calculation.
Profit run behind the offer
| Period | Net profit (EGP mn) | Change |
|---|---|---|
| 2024 | 12,370 | Base |
| 2025 | 16,133 | 30% |
| First half 2025 | 7,460 | Base |
| First half 2026 | 8,587 | 15% |
| 12 months to June 2026 | 17,260 | 7% on 2025 |
Profit after tax, standalone, from the bank’s 2025 and first-half 2026 results releases; annual and half-year changes as printed by the bank; the 12 month figure and its change are our calculation.
The balance sheet behind that profit has expanded over 18 months: total assets grew 14.4 percent between December 2024 and June 2026, to 552.50 billion pounds, and customer deposits stood at 440.42 billion pounds at the end of June. Across the range, the offer would value the bank at 16.7 to 18.4 percent of its deposit base and 13.3 to 14.6 percent of its total assets, on our calculation.
Why it matters: The offer will put a market price on one of Egypt’s state-owned banks, and the indicative range sets that price at 1.13 to 1.24 times book for a lender that reported an annualised 27.2 percent return on average equity in the first half. For Egypt’s state asset sale programme, an offering of up to 24.25 billion pounds, which would reach 36.37 billion at a 45 percent stake on our calculation, is a direct measure of how much capital local and foreign investors will commit to a state bank listing on the Egyptian Exchange.
Outlook: Orders for the private placement close on 23 October, the final price is due by 26 October at the latest and the public subscription closes on 28 October, with demand during the subscription guiding whether the sale stays at 30 percent or widens toward 45 percent. Trading is expected to begin in November, subject to regulatory approvals, and a final price at the top of the range would value the bank at 80.8 billion pounds, on our calculation.
Sources: Egyptian Cabinet, Banque du Caire, Bloomberg, CNBC, The Edge.
