Egyptian real estate investment firm Bonyan eyes expansion in East Cairo
Speaking to Zawya Projects, Fadl said seven new assets are currently under evaluation, with one expected to be selected soon for acquisition.
The company currently owns 10 commercial assets in East and West Cairo with 93 percent occupancy rate and 56 percent of the leases denominated in US dollars.
Commenting on the company's initial public offering (IPO) on the Egyptian stock exchange EGX, Fadl said that first-day subscription coverage on Sunday surpassed expectations, calling the market response 'very positive.'
The company is offering up to 21.94 percent of its share capital through the IPO with a total transaction size of EGP 1.8 billion. Of the total EGP 1.8 billion offering, EGP 1.55 billion will be raised through a secondary sale by existing shareholders, while EGP 250 million will be generated via a primary issuance of new shares.
Fadl said the company's share was valued at EGP 7.5 per share by an independent financial advisor, who based the assessment on a blend of asset appraisals and comparable transaction benchmarks, implying offering valuation of EGP 8.2–9 billion for the floated stake.
'If the capital is increased, the funds will be used to support the company's investment expansion,' he said, adding that debt levels remain low, currently not exceeding 8 percent of the portfolio's value, as a precaution amid high interest rates.
The offering is structured with a 95 percent allocation to institutional investors and 5 percent to retail participants, according to a presentation by company officials. It includes a stabilisation fund of EGP 360 million, equivalent to 20 percent of the offering size, of which EGP 270 million is designated for the private tranche. The stabilisation mechanism will remain active for one-month post-listing.
(1 US Dollar = 49.69 Egyptian Pounds)
(Writing by Marwa Abo Almajd; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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