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Sunday, 16 July 2017

Banque Du Caire’s IPO limited to 20%

IPO WATCH- It seems state-owned Banque du Caire will list no more than 20% of its shares during its upcoming initial public offering, according to comments by BdC Vice President Soha Suleiman picked up by Al Masry Al Youm. If true, the report throws cold water on previous reports, which suggested that the bank’s IPO, which will be managed by EFG Hermes and HSBC, would see up to 49% of the bank’s stock on offer, including an international offer to institutional investors of 29% and a domestic offer to retail investors on the EGX of 15%. Five percent would have been earmarked for trading as global depositary receipts on the London Stock Exchange.

As for the IPO of petroleum services outfit Enppi, the state is expecting to net between USD 213 mn and USD 267 mn the sale of a 24% stake, sources close to the matter tell Al Mal. The newspaper says the company will likely be valued in the EGP 16-20 bn range. A consortium led by CI Capital and including Jefferies and Emirates NBD Capital was tapped by the government to serve as lead managers and bookrunners of the listing, likely to be the first IPO of a state-owned company in 12 years. Baker McKenzie will serve as legal advisor, though it’s unclear whether the firm is counsel to the issuer or to the lead managers.

Finally, the IPOs of the four companies that will operate the Siemens power plants appear likely to be pushed to FY2018-19 from FY2017-18, the head of the Egyptian Electricity Holding Company Gaber Desouky tells Al Mal. Last year, the government had announced that it was forming four companies to own the three combined cycle plants of Burullus, the new capital, and Beni Suef build under a contract handed to Siemens. The companies were supposed to be formed this month, according to Electricity Minister Mohamed Shaker. Siemens, Germany’s Steiaj, an Orascom-ADERA Energy consortium, and an Elsewedy-EDF consortium have submitted their technical offers for the tender to manage the plants.

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