Qatar National Bank (QNB) is set to sell nearly 2.1% of its stake in Egyptian unit QNB ALAHLI to comply with the free float requirements of the Egyptian Stock Exchange as well as fulfil other requirements of local regulators.
The Egyptian stock exchange rules require a free float of more than 5%.
Following the sale, QNB Group’s stake in QNB ALAHLI will reduce to 95% from its current holdings of 97.12%.
In the regulatory filing, the Middle-East lending firm stated to have hired CI Capital in Egypt to advice on this divestment initiative.
In 2013, QNB entered Egypt by buying Societe Generale’s business in the country for nearly $2bn.
According to Thomson Reuters data, QNB QNB ALAHLI is the third largest bank in the Egypt by assets.
The group’s total assets reached to QAR811bn ($223bn) at the end of 2017, an increase of 13% compared with the last year.
The bank said that the growth in total assets was driven by loans and advances which registered a jump of 12% to reach QAR584bn ($161bn).