Latest news with #ShamelAboulFadl
Daily News Egypt
2 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
3 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
3 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. (
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.'
Zawya
07-07-2025
- Business
- Zawya
Egyptian real estate investment firm Bonyan eyes expansion in East Cairo
Egyptian real estate investment company Bonyan is planning to expand its portfolio in the commercial real estate sector with a particular focus on East Cairo, according to the company's CEO Shamel Aboul Fadl. 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) (
