Thndr Blog

United Bank IPO: Another Risk-Free Chance to end the year strong!

Big news! The United Bank is going public on the Egyptian Exchange (EGX) this November. And guess what? It’s the last risk-free investment opportunity in 2024 after ACT Finance (ACTF) which delivered a solid 29.7% return to investors on its first trading day. 

If it’s your first time to hear about IPOs (Initial Public Offerings), start with our quick IPO 101 to get up to speed before continuing this blog post. 

Are IPOs Back?

It seems like it. After a two-year pause, Egypt’s IPO scene is heating up again. It started with ACT Financial’s successful debut in July 2024, and now less than 5 months later, United Bank is the next in line. 

Between 2022 and 2023, Egypt faced economic challenges: dollar shortages and an unstable exchange rate created uncertainty and put IPOs on hold. But things are changing: economic reforms, a commitment to a flexible exchange rate under the IMF’s loan program, and headline-grabbing deals like Ras El Hikma are boosting confidence and paving the way for a renewed activity on the Egyptian Exchange.

In March 2024, the Egyptian government rolled out an ambitious plan to list 40 companies from 18 sectors that would go public as part of its IPO program. The goal is to increase private-sector participation and drive economic growth. The United Bank IPO is a significant milestone in this privatization journey which reinforces the government’s commitment to driving this program forward. 

Who doesn’t love a risk free opportunity? 

In Egypt, IPOs are the ultimate no-loss deal, an investment with potential upside and no downside.

  • If the stock price goes up, you make profit.
  • If the stock price drops, you can return your shares after 30 days and get your money back. 

This is made possible by a stabilization fund that is confirmed to be there in the United Bank IPO and backs 100% of the offering made to everyday investors (known as the public offering part of the IPO). Plus, Thndr also will waive fees on any shares sold through the stabilization fund. So it’s really a 100% guaranteed risk free opportunity. 

Real-life wins from past IPOs

Many of Egypt’s past IPOs has delivered impressive first-day returns:

  • Fawry (FWRY) in 2019: +30% returns 
  • E-Finance (EFIH) in 2021: +50% returns 
  • ACT Financial (ACTF) in 2024: +29% returns

Even IPOs that started slow, like Macro Group (MCRO) in 2022 (down 35% after 30 days), were still a no-loss opportunity, since investors that wanted to, were able to recover their full investment using the stabilization fund.

Tell me more about The United Bank

You’ve probably come across it, perhaps you’re already a client who used their app or visited one of their 68 branches across 15 governorates in Egypt. Either way, let’s tell you a bit more about its story. 

In 2006 the United Bank was established by the Central Bank of Egypt (CBE) as part of a major reform to strengthen Egypt’s banking sector. It emerged from the merger of three struggling banks, with the CBE implementing a turnaround strategy that took the bank from a loss of EGP 4.4 billion in 2006 to a profit of EGP 1.7 billion in the first half of 2024. 

Key highlights

  • Unique Dual Services (Islamic and Conventional): The United Bank stands out by offering both islamic and conventional banking services, and is one of only 5 banks who has both licenses in Egypt and one of 14 banks licensed for Islamic banking.
  • Attractive Dividend Potential: The bank is profitable and well-funded by the Central Bank of Egypt (CBE). The bank has consistently grown its profits, and last year, it paid out 50% of its profits as dividends which is great news for long-term investors.
  • A Strategic Partnership with the CBE: As the majority shareholder, the Central Bank of Egypt (CBE) ensures credibility, and strategic guidance for The United Bank. Also, with a vested interest in enhancing the bank’s value, the CBE will be working hard to maintain a strong performance track record ahead of any potential future sale transaction as the CBE may gradually reduce its ownership of the bank. 

Things to consider

  • Conservative Strategy: The bank’s asset management approach is cautious, which means lower returns compared to peers in a continued high-interest-rate environment.
  • Smaller Scale: Total assets and deposits are still modest compared to larger listed peers.

Is this a promising long-term investment?  

The answer depends on factors like valuation, financial performance, and peer to peer analysis which are offered exclusively to Rumble subscribers. Signup today for a free 1-month trial. 

The TLDR of this IPO

If you want to go further in-depth on this IPO, you can also read the prospectus issued by United Bank here.

How to invest in the United Bank IPO

Follow these three simple steps:

  1. Download the Thndr app and open an investment account (if you haven’t already).
  2. Top up your wallet—make sure it’s ready before the subscription starts.
  3. Place your order directly on the app by searching for “UBEE” and submitting your buy order.

If you’re a qualified investor interested in the private offering, check this article with all details.

What experienced IPO investors already know and you should too:

  • Oversubscription Happens: IPOs are often oversubscribed, meaning you might get fewer shares than you wanted. Don’t worry—the unused money will be refunded to your Thndr wallet.
  • Maximize Allocation: Use Thndr’s feature to subscribe with up to 4x the money in your wallet to maximize your allocation, but be prepared to deposit the difference if the IPO is not oversubscribed (which is unlikely to happen). 
  • Set a Reminder on day 30: If the stock price drops, remember to redeem your shares on day 30 to recover your investment. Thndr will send you reminders if this happens and all the required details. 

Ready to Invest in This IPO? 

Download Thndr and make the best out of this opportunity.