Bonyan prices IPO at EGP 4.96 per share following strong private placement demand

Daily News Egypt

2 days ago

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.