Latest news with #AboulFadl
Daily News Egypt
15-07-2025
- Business
- Daily News Egypt
Bonyan prices IPO at EGP 4.96 per share following strong private placement demand
Bonyan for Development and Trade has announced the final share price for its initial public offering (IPO), setting it at EGP 4.96 per share. The company reported robust demand for its private placement, which was oversubscribed by approximately 6.88 times. In an official statement, Bonyan confirmed that the same price will apply to the public offering, which comprises 18,145,161 shares. The public subscription period remains open until Wednesday, July 16. To participate, investors must deposit at least 25% of the value of their intended purchase, based on the final offer price, in accordance with the terms outlined in the offering prospectus approved by Egypt's Financial Regulatory Authority (FRA). Shares will be allocated on a pro-rata basis, determined by the ratio between shares available and total investor demand. The offering, which launched last Sunday, includes approximately 362.9 million shares—equivalent to 22% of the company's total outstanding shares—valued at EGP 1.8bn. This consists of 344.8 million shares allocated to institutional and high-net-worth investors in the private placement and 18.1 million shares offered to the public. The minimum subscription in the private placement was set at EGP 1m for high-net-worth individuals and EGP 10m for institutions. The public offering allows for a minimum subscription of 100 shares and a maximum of 200,000 shares per investor. CEO Shamel Aboul Fadl stated that trading of Bonyan shares on the Egyptian Exchange is expected to commence before the end of July. He described the response to the offering as 'very positive,' with subscription levels exceeding expectations. To support the stock post-listing, the company has established a price stabilization mechanism covering 100% of the public shares for 30 days. Additionally, an optional support fund—equal to 15% of the total offering—will be activated if the share price dips below the offering level during the same period. Current shareholders have agreed to a mandatory 24-month lock-up on 51% of the company's shares, with a voluntary six-month lock-up on the remainder. Regarding the use of proceeds, Aboul Fadl noted that Bonyan's debt currently stands at less than 8% of its portfolio value, primarily due to high prevailing interest rates. Of the EGP 1.8bn raised, EGP 1.55bn represents a secondary offering, while EGP 250m is a primary offering. The proceeds from any future capital increase will be used to finance the company's expansion strategy.
Daily News Egypt
08-07-2025
- Business
- Daily News Egypt
Bonyan expects EGX listing before July-end, eyes expansion in administrative, commercial real estate
Shamel Aboul Fadl, CEO of Bonyan for Development and Trade, announced that the company's shares are expected to begin trading on the Egyptian Exchange (EGX) before the end of July. Speaking at a press conference, Aboul Fadl described the coverage of the share offering as 'very positive and better than expected.' Bonyan offered approximately 362.9 million shares valued at EGP 1.8bn, representing around 22% of the company's total equity. The private offering includes 344.8 million shares, while the public tranche comprises 18.1 million shares. The private subscription period runs from Sunday through 10 July, with the public subscription to follow between 11 and 15 July. According to the offering prospectus, the share price range was set between EGP 4.96 and EGP 5.44, with an estimated fair value of EGP 7.52 per share. The minimum investment threshold for high-net-worth individuals in the private offering was EGP 1m, and EGP 10m for institutional investors. Public investors were required to purchase a minimum of 100 shares and a maximum of 200,000 shares. To support the offering, a price stability fund has been established to fully cover the public tranche for a 30-day period, ensuring the share price does not drop below the offering level. Existing shareholders are subject to a mandatory lock-up on 51% of shares for two years, with a six-month voluntary lock-up on the remainder. An additional support fund, covering 15% of the total offered shares, was allocated for the private offering and will be activated if needed. Aboul Fadl noted that the EGP 7.5 per share valuation was determined by an independent financial advisor based on asset values and comparable market transactions. He added that the company's fair valuation stands at EGP 12.5bn after adjustments. Regarding the use of offering proceeds, he explained that Bonyan's debt accounts for just 8% of its total portfolio value, due to the impact of high interest rates. Of the EGP 1.8bn raised, EGP 1.55 billion is secondary and EGP 250m is primary capital. Any future capital increases will be directed toward expansion. Bonyan's operating model is based on acquiring existing buildings and leasing them to multinational or large Egyptian corporations. The company currently owns approximately 150,000 square metres of property, with 75% comprising office space and 25% commercial malls. Its real estate portfolio includes 10 assets—nine office buildings and one mall—with an occupancy rate of about 93%. Around 60% of tenants are international companies, with the remainder being local firms. Looking ahead, Aboul Fadl said the company plans to expand its footprint in administrative and commercial real estate and is currently studying seven new assets in East Cairo. The most suitable of these will be acquired soon, he said, adding that profitability is expected to improve in 2025 due to the repricing of expiring contracts signed under previous cost structures. Despite the challenges posed by rising interest rates and higher operating costs, Bonyan posted a net profit of EGP 2.6bn in 2024. Aboul Fadl attributed the strong performance to the company's 'dynamic management' strategy, which focuses on asset efficiency and risk diversification. He also highlighted a series of strategic acquisitions completed in 2022, which form the foundation for future growth. These assets are still under development, with returns expected to begin appearing in the company's financials starting in 2025. Aboul Fadl stressed that Egypt's real estate market remains among the most promising in the region, supported by limited supply and growing demand. This imbalance continues to drive price increases and reinforces real estate's position as a strategic, low-risk investment. Citing international analyses, including reports from JP Morgan, he said real estate investments in Egypt yield annual returns exceeding 14%, with more than 70% of that return derived from capital appreciation rather than rental income. He estimated the current demand gap in Egypt's real estate market at between 4.5 and 6.5 million square metres. This gap presents significant opportunities for developers to launch new projects, particularly in East Cairo, the New Administrative Capital, and 6th of October City. Outlining the company's long-term strategy, Aboul Fadl said Bonyan follows a 'Core + Value Add' investment model, combining acquisitions of immediately income-generating assets with those requiring development or refurbishment to unlock additional value. 'We're not chasing quick wins,' he said. 'We rely on detailed market analysis of supply and demand and focus on assets tied to strategic sectors such as education, administration, and healthcare—sectors that offer long-term growth and resilience.'
