Latest news with #ShamelAboulFadl
Al-Ahram Weekly
3 days ago
- Business
- Al-Ahram Weekly
Parting ways with traditional investment - Economy - Al-Ahram Weekly
The growing interest in the two recent listings on the Egyptian Stock Exchange highlights a shift in investor perceptions of what constitutes a sound investment For decades, Egyptians have viewed investment opportunities through the narrow lens of real estate, gold, and more recently certificates of deposit. However, the recent listings of ValU and Bonyan on the Egyptian Stock Exchange (EGX) have stirred a buzz among market observers and investors due to the companies' unconventional and highly profitable business models and different fields of work — consumer financing and income-generating real estate. ValU, established in 2017, is a leader in financial technology (fintech), a field that is rapidly growing in Egypt and offering a wide array of services. The buy-now-and-pay-later service, one of the most widely used service offered by fintechs, has become the go-to solution for Egyptians who can't afford to buy expensive commodities, let alone even essential products, in cash. ValU has a share of 27 per cent in the consumer financing market, with a competitive advantage in the car loans segment in particular. The company extends more than LE350 million in auto loans monthly. As for Bonyan, 'We buy properties that are either fully constructed or nearing completion. Then, we lease them to international and Egyptian companies. So, in essence, what we do is similar to how individuals invest in real estate, but we do it institutionally, while focusing on leasing commercial and office spaces,' Shamel Aboul Fadl, Bonyan's CEO, said in a recent interview with Arab Finance. 'Our activity is completely different from that of typical real estate developers operating in the market. We do not build or develop properties, we acquire finished, ready-to-use properties for leasing purposes,' he added. Market observers view this line of business as a lifeline for real estate developers. By selling their units directly to businesses like Bonyan, developers can recover the needed capital and shift their focus to building new units, rather than having to wait for the properties to be sold through long-term instalment schemes. Meanwhile, the buyers of Bonyan shares gain easy access to diversified, professionally managed real estate, without owning property. Amr Hassan Al-Alfi, an equity analyst at Thndr, a trading platform and mobile app focused on investment, wrote in a report on Bonyan: 'For the first time, investors can buy in a business that owns income-generating commercial and administrative real estate like Walk of Cairo and gives you exposure to stable rental income, all through the stock market.' Bonyan is offering 21 per cent of its shares through initial public offering and private placement, selling stake to targeted institutional investors. In this case, investment banks collect orders from investors before the listing. On launching day, shares are priced and sold, before the stock starts trading publicly. ValU's offering took place differently. EFG Holding, the parent company of ValU and one of the region's leading investment banks, opted to distribute a portion of its profits through an in-kind dividend, offering a partial stake in ValU instead of cash. The company allocated approximately 20.5 per cent of ValU's shares to EFG's shareholders, with the transaction valued at around LE3.2 billion. As a result, each EFG shareholder now owns a stake in ValU. The shares are officially listed on the stock exchange, though they are not necessarily actively traded. This is known as 'technical listing', whereby shares are listed on the exchange but only sold at a later stage, contingent upon future demand. On its first day of trading among EFG shareholders, the value of ValU shares surged by 852.4 per cent from their opening price of LE0.78. Bonyan's private placement was 6.88x oversubscribed and until Monday the retail offering was 5x oversubscribed. The subscription closing day was scheduled for 16 July. Building on their sound performance, the two companies have plans for expansion. ValU is preparing to launch its services in the Jordanian market. Bonyan's Aboul Fadl said that in addition to the company's focus on the office real estate market, it is exploring investments in the warehousing and logistics sector, particularly facilities leased to multinational corporations and major Egyptian companies. The company's investment portfolio hovers around LE17 billion as of March. According to Thndr, Bonyan owns 10 premium commercial properties in East and West Cairo with 93 per cent occupancy. The 119 tenants of the company's units include major brands such as Nestlé, Turkish Airlines, Grohe, GE, Johnson & Johnson, and Vodafone. Moreover, 56 per cent of the properties are leased in US dollars, providing a built-in hedge against inflation. As for Valu, beyond its lending and payment services, its financial solutions portfolio includes a cash redemption programme, savings plans, and a financing option designed to facilitate the purchase of big-ticket items worth up to LE15 million. 'We want people to use their ValU cards to top up their mobile phone credit, and we're also seeing them use our app to buy yachts,' Walid Hassouna, CEO of ValU, told Enterprise Online news service. The number of clients within Egypt's consumer finance segment grew nearly 16-fold between 2020 and 2024, rising from over 250,000 to more than four million. Currently, there are 45 companies licensed to provide consumer finance services in Egypt, according to Thndr. Valu and Bonyan's listings have injected much-needed vitality into the market, which has seen little to no initial public offering activity in recent months — the most recent being the public offering of United Bank in November. The growing appetite for such offerings is expected to encourage the government to advance its stalled privatisation programme. Prime Minister Mustafa Madbouli recently stated that the government intends to privatise a number of public companies via the stock exchange, with targeted proceeds ranging between $5 and $6 billion. The slow pace of the privatisation programme is the primary reason behind the IMF's decision to postpone the disbursement of the fifth tranche of its $8 billion loan, according to Madbouli. * A version of this article appears in print in the 17 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Zawya
3 days ago
- Business
- Zawya
Egypt: Bonyan's public offering covered 33.7x
Arab Finance: Bonyan for Development and Trade's public offering has been covered approximately 33.7 times, as per a disclosure by the Egyptian Exchange (EGX). The total number of buy orders registered in the special transactions market reached about 611.654 million shares. The deadline for registering buy and sell orders ended today, July 16th, 2025. On July 14th, the EGX announced that the private placement of Bonyan's shares had been oversubscribed by 6.88 times. In his first exclusive interview following the initial public offering (IPO) subscription launch, Shamel Aboul Fadl, Executive Chairman of Bonyan, told Arab Finance that trading on Bonyan's stock is expected to begin before the end of July. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Daily News Egypt
5 days ago
- 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.
Zawya
6 days ago
- Business
- Zawya
EGX unveils final price, coverage ratio for Bonyan's private offering
The private placement of Bonyan for Development and Trade's shares has been oversubscribed by 6.88 times, the Egyptian Exchange (EGX) announced. Moreover, the EGX noted that the final offering price has been set at EGP 4.96 per share. This came as disclosed by the issuing company in the Al Mal and Al Borsa newspapers on July 14th. Accordingly, the EGX has instructed all brokerage firms participating in the public offering to deposit at least 25% of the total value of shares they intend to purchase. Additionally, firms must adjust any previously recorded orders to reflect the final price of EGP 4.96 per share. It is worth noting that the company seeks to raise EGP 1.8 billion by offering 20% to 21.9% of its shares, about 362.903 million shares, according to its IPO prospectus. In his first exclusive interview following the initial public offering (IPO) subscription launch, Shamel Aboul Fadl, Executive Chairman of Bonyan, told Arab Finance that trading on Bonyan's stock is expected to begin before the end of July. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
6 days ago
- Business
- Zawya
Egypt: Bonyan IPO, bringing a new real estate investment model to EGX
Arab Finance: Looking at Egypt, it is clear that most wealth of Egyptians in the country has been created through real estate investment. Bonyan is an Egypt-based company specialized in real estate investment, particularly in the commercial and office segments. In the evolving Egyptian market, the company has significant growth potential. In his first exclusive interview following the initial public offering (IPO) subscription launch, Arab Finance spoke to Shamel Aboul Fadl, Executive Chairman of Bonyan, about the company's business model and the difference from typical real estate development models in Egypt. As the company opened its IPO subscription this week, Aboul Fadl notes that this is the ideal time to list Bonyan's shares on the Egyptian Exchange (EGX). The IPO decision is based on the company's study of the Egyptian market and the performance and trading volumes of the EGX. In addition to Bonyan's current focus on the office real estate market, Aboul Fadl indicated that the company is also exploring investments in the warehousing and logistics sector, particularly facilities leased to multinational corporations and major Egyptian companies. He notes that the total value of the company's investment portfolio, before deducting liabilities, reached nearly EGP 17 billion as of March. 1- The biggest news for Bonyan right now is the offering of 21.94% of its shares on the EGX. Can you tell us more about it? We have been working on this IPO for quite some time, waiting for the right moment. The EGX has been performing well overall in the past period, in addition to real estate stocks performing particularly well. Recently, we have seen a general upward trend in the market. Any company aiming to go public waits for the right IPO window. We officially opened the subscription for Bonyan's IPO on July 6th, for a five-day private placement to institutions until July 10th, with a public offering for individuals until July 15th. We expect trading to begin before the end of July. We have been closely monitoring the market, its trading volumes, and the recent entry of ValU's, and we believe this is the right time to introduce a new stock in the market. 2- How will this IPO impact the real estate investment landscape in Egypt? In Egypt, we traditionally view real estate as the largest and best asset class. It is the largest investment percentage for most Egyptians, and a driver of wealth, whether it is buying buildings or land as a long-term creator of value. That is the traditional model. But there is another form of investment, which is real estate investment through structured companies like Bonyan. Our model is different than most individual investors in real estate currently. We do not invest in residential properties. Instead, we focus on commercial and office properties. We buy properties that are either fully constructed or nearing completion. Then, we lease them to international companies and Egyptian companies So, in essence, what we do is similar to how individuals invest in real estate, but we do it institutionally, while focusing on leasing commercial and office spaces. Our activity is completely different from that of typical real estate developers operating in the market. We do not build or develop properties, we acquire finished, ready-to-use properties for leasing purposes. 3- Does that mean you currently have no competitors in the market? Currently, we do not have any direct competitors in the market. However, I expect some investors may try to launch similar ventures in the near future, especially after Bonyan's listing. This is, of course, a positive development for the sector as a whole. There has been news that several companies are targeting to establish real estate investment funds and companies, which will support and expand the sector. 4- Why didn't Bonyan opt for a direct listing, like U Consume Finance (valU)? Bonyan's IPO model is different from ValU's. In our case, all orders are collected through investment banks and offered on a single day. The key portion of the offering is sold that day, followed by market trading. As for ValU's model, although it is a successful one, it is different from Bonyan's model. It is known as a 'technical listing.' Where shares are listed and then sold a there are orders in the future. Since listing till today, ValU has traded around 7% of its outstanding shares in the market. 5- Following the listing of around 362.9 million shares of Bonyan on the stock market, what are the expected offering proceeds and company valuation? The total expected proceeds from the offering are EGP 1.8 billion, EGP 250 million of which will be directed to increase the company's capital. As for the valuation, the independent financial advisor (IFA) overseeing the IPO issued a report, setting the company's net valuation after liabilities at around EGP 12.5 billion. The offering is priced attractively, targeting a range between EGP 8.2 and 9 billion, This gives shareholders the opportunity to benefit from the spread between the offering price and the fair value of the shares. 6- The real estate sector accounts for about 13% of the EGX's total market capitalization, making it the second-largest sector after banking. What makes Bonyan stand out and attract investors compared to others? All companies in the real estate market are developers, which is different from our business model. We focus on real estate investment in leasing commercial and office properties. We retain ownership of the properties, aiming to maximize their value. We do not sell them except to rebalance the portfolio. Instead, we lease them to businesses. If we look at international markets, most listed real estate companies are investment companies, not developers. 7- What is the current value of Bonyan's investment portfolio? As of the end of March 2025, Bonyan's total investment portfolio is valued at EGP 17 billion, based on an external valuation. This figure reflects the value of our assets before deducting all the liabilities and bank debt 8- What are the company's plans for expanding its real estate portfolio following the IPO? The current shareholders acquired Bonyan in 2018. Although the company has been in the market since 2008, it only had one asset at the time of acquisition. Today, we own 10 real estate assets. We see strong growth potential and are continuously evaluating various investment opportunities presented to us. We assess and compare these opportunities based on our proprietary real estate market database in Egypt, which helps ensure that the properties we acquire align with the needs of the end tenant. 9- What is the company's philosophy behind focusing on administrative and commercial properties? When considering investment in office properties, it is essential to look at it from several angles. We believe we have a unique competitive advantage in this segment. Unlike residential real estate, currently, the office market is experiencing a supply-demand gap in favor of demand for office properties. 10- How do you assess investment in office and commercial buildings, especially in light of the supply-demand gap? In addition to the existing supply-demand gap in the market, Bonyan has another advantage. While office spaces currently offered to investors and users for sale tend to be small in size, Bonyan purchases large spaces at more favorable prices compared to buyers of smaller units. The second more important point is that the fact that we own a large office building, which allows us to offer our clients the large-scale spaces they need, tailored to their preferences and with the right specifications. 11- Is Bonyan planning to diversify into other types of real estate beyond administrative and commercial properties over the coming period? Alongside administrative buildings, we are currently exploring investments in logistics and warehouse properties, which are typically leased to global, multinational, and Egyptian companies. While we are not currently considering residential real estate, we may revisit it in the future if we identify an opportunity where there is both a market gap and attractive rental prospects. 12- How is the company dealing with inflation amid market volatility? Inflation and rising prices actually work in our favor, as the value of the properties we have acquired increases over time due to such inflation. This contrasts with real estate developers who are significantly impacted by inflation due to the rising cost of raw materials during the construction phase, while they have fixed selling prices 13- How do you view the challenges and risks facing Egypt's real estate market? To answer this question, we need to consider supply, demand, and inflation when assessing the risks surrounding Egypt's real estate sector. 14- What are the company's plans and strategy for the upcoming period? We have expansion plans in the pipeline. Currently, we are evaluating investment opportunities in several real estate assets. 15- How do you see the impact of the Central Bank's recent interest rate cut on the real estate financing sector? The Central Bank of Egypt's (CBE) decision to lower interest rates is a very positive step for the real estate market. With inflation easing, the interest rate will continue to be reduced, which benefits real estate investment. It also benefits Bonyan as a company, since the model improves returns when our asset acquisitions are funded through bank facilities in addition to our own equity and cash flow. Currently, our debt levels do not exceed 8% of our investment portfolio. 16- What are your expectations for the Egyptian real estate market given the ongoing geopolitical changes in the region? Since 2011, property prices have not been negatively affected by regional tensions. On the contrary, they have benefited and continued to rise. 17- Compared to other investments like gold, the US dollar, bank deposits, and stocks, what makes real estate investment stand out? The main advantage of real estate investment is its ability to hedge against inflation. A global study conducted between 2013 and 2024 on global real estate by Morgan Stanley found that while the average global inflation rate was around 4%, the average return on real estate was about 14%. That means real estate returns were more than double the inflation rate. At Bonyan, we conducted a detailed 13-year study comparing returns from all asset classes availed in Egypt, namely real estate, gold, USD, treasury bills, and listed stocks. We found that real estate delivered an annual return of around 32%, compared to approximately 26% for gold and 15% for treasury bills. While the returns may seem close but because of compounding, the impact is massive. For example, real estate and gold have only a 6% difference in returns per year. An investment of EGP 1 million in gold during that period would have grown to EGP 13.5 million, while the same amount invested in real estate would have yielded a higher return of EGP 22 million. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
