Egyptian developer Al Ahly Sabbour plans 20-25% EGX listing, eyes regional expansion
Egypti's Al Ahly Sabbour Developments is planning to offer between 20 to 25 percent of its shares on the Egyptian Stock Exchange (EGX) within the next 10 months, Chairman Ahmed Sabbour told Zawya Projects.
The private developer is evaluating proposals from Beltone, CI Capital, Al Ahly Pharos, and EFG Hermes for advisory roles on the initial public offering (IPO), he said.
Al Ahly Sabbour expects to appoint a financial advisor by June 2025, with the IPO process likely to take around 10 months thereafter, including regulatory approvals from the Financial Regulatory Authority (FRA), Sabbour said.
"We are working around the clock on the offering file to take advantage of the current market momentum and maximise returns," he said.
Established in 1998, Al Ahly Sabbour is a joint venture between multidisciplinary engineering services firm Sabbour Consulting and National Bank of Egypt (Al Ahly).
In a press statement issued on Wednesday, the company said it achieved sales of 32.5 billion Egyptian pounds ($642 million) and delivered 2,500 units.
Sabbour did not discuss the expected size of the offering but said the company plans to increase its capital, independent of the IPO, from EGP 300 million ($6 million) to EGP 550 million ($11 million) by the end of the year.
Al Ahly Sabbour's listed industry peers include Palm Hills Development Company (PHDC), SODIC and Arab Developers. According to LSEG data, as on 12 February 2025, PHDC commanded a market capitalisation of approximately EGP 18.50 billion ($365.5 million), SODIC's stood at approximately EGP 22.10 billion ($437 million), while Arab Developers Holding's market cap stood at EGP 2.90 billion ($57 million).
Regional expansion plans
In addition to the EGX listing, Al Ahly Sabbour is also expanding into new markets in the Gulf region. In January 2024, the company announced the launch of the 23-acre, 760-unit 'Wadi Zaha' in its flagship project in Oman's Sultan Haitham City, at investment of 90 million Omani riyals ($234 million).
The 100-acre project, which also includes Wadi Safa and Wadi Tala neigbourhoods, will feature approximately 3,500 housing units.
In Saudi Arabia, the company is negotiating land acquisition with the Ministry of Municipalities and Housing and private companies.
'We are negotiating for a 250-acre land parcel in Khuzam [Riyadh region] for a residential project,' he said.
Plans for 2025
According to the press statement, Al Ahly Sabbour is targeting sales of EGP 32 billion ($632 million) in 2025, backed by an ambitious investment plan of EGP 10 billion ($198 million) to accelerate construction and development across its projects. In 2024, the construction outlay was EGP 6 billion ($118.5 million).
New contracts awarded include infrastructure works for the Keeva project in 6th of October to EJAB; infrastructure and roadworks for Alaire project in Mostakbal City to Build Tec, and exterior walls and gates for the Alaire, Woodwalks, Rare, and The Ridge projects to ICON.
On the delivery front, the first phase of the Gaia project in Ras El Hekma has been delivered while 100 percent of the L'Avenir project in Mostakbal has been constructed, with 60 percent of units already delivered. The remaining deliveries are scheduled for completion by the second quarter of 2025.
For the Alaire project, the first batch of delivery is set to commence in 2025 while for Keeva, Phase 1 deliveries will begin by the end of 2025.
New projects debuting in 2025 are Summer Vibes, the second phase of the Summer project in the North Coast and Roofscape within the AT-EAST project in Mostakbal City.
The total construction investment for Summer Vibes amounts to EGP 10.5 billion ($207 million), covering 1,728 residential units, while EGP 2 billion ($39.5 million) is being earmarked for the new 700-unit release within AT-EAST, the statement said.
Al Ahly Sabbour's land bank stands at 4,000 feddans, spread across 65 real estate projects in East and West Cairo, the Red Sea coast, the North Coast and regional markets.
(1 US Dollar = 50.62 Egyptian Pounds)
(Reporting by Eman Hamed & Marwa Abo Al Majd) (Editing by Anoop Menon) (anoop.menon@lseg.com)
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