In a significant development for the Egyptian economy, the initial public offering (IPO) of United Bank on the Egyptian Exchange (EGX) has set a new benchmark. This event marks the first bank listing in over two and a half decades and the country’s first IPO since 2021. The IPO is part of an International Monetary Fund (IMF)-supported privatization initiative aimed at boosting private investment and enhancing economic stability. United Bank offered a substantial portion of its shares to the public, attracting immense interest from both institutional and retail investors. The successful listing highlights Egypt's growing appeal as a financial hub and signals confidence in its economic reforms.

A Pivotal Moment for Egypt's Capital Markets

In the vibrant autumn season, Egypt witnessed a transformative moment when United Bank made its debut on the Egyptian Exchange. On December 10, 2024, under the ticker symbol UBEE.CA, the bank began trading its shares, marking a milestone not seen in over 25 years. The IPO involved selling a 30% stake, with 330 million shares priced at EGP13.85 each, valuing the bank at approximately $300 million. The institutional book-building process, which concluded on November 25, saw demand surpass six times the offered shares. Retail investors, who had until December 3 to subscribe, showed unprecedented enthusiasm, with subscriptions exceeding 59 times the available shares. Overall, the IPO garnered demand for 2.85 billion shares, oversubscribing by 8.6 times.

During the bell-ringing ceremony, Hassan Abdalla, Governor of the Central Bank of Egypt (CBE), highlighted the importance of this event. "This landmark IPO underscores the strength and transparency of Egypt’s financial sector. It aligns with our commitment to promoting sustainable growth and attracting diverse investments," he remarked. Ahmed El-Sheikh, Chairman of the Egyptian Exchange, emphasized the transformative impact on capital markets. "This listing not only enhances market liquidity but also paves the way for future IPOs, solidifying Egypt’s role as a leading regional financial center," he noted. Ashraf El-Kady, CEO of United Bank, expressed optimism about the bank's future. "The funds raised will bolster our capital base, support expansion plans, and deliver greater value to stakeholders," he said.

The IPO aligns with Egypt’s broader reform agenda to deepen capital markets and divest state-owned assets, following IMF recommendations to promote private-sector participation. The overwhelming investor interest signifies confidence in Egypt’s economic potential and positions the country as a focal point for domestic and international investment, even amidst ongoing challenges. This pivotal listing showcases Egypt’s resilience and success in attracting investor attention, highlighting its ability to navigate economic headwinds.

From a journalistic perspective, this historic IPO serves as a beacon of hope for Egypt's economic future. It demonstrates that well-executed reforms can foster investor confidence and open new avenues for growth. For readers, it offers a glimpse into the potential of emerging markets and the importance of strategic financial reforms in driving economic progress. This event sets a positive precedent for future listings and reinforces Egypt's position as a promising destination for investment.