Bonyan Real Estate Investment executives held a press conference on Tuesday to share key updates regarding their forthcoming initial public offering (IPO) on the Egyptian Exchange (EGX). The company announced that it had received official approval for the listing, with the IPO expected to take place by the end of February, subject to the completion of regulatory requirements.
The offering will involve a sale of 49% of the company’s equity, combining both primary and secondary shares. Bonyan has enlisted CI Capital and Arqaam Capital as bookrunners, Mubasher as the offering agent, and Matouk Bassiouny & Hennawy as the legal advisor to oversee the IPO process.
Private Offering for Institutions, Limited Public Access
Bonyan’s Managing Director, Tarek Abdel Rahman, clarified that 95% of the offering would be targeted at institutional investors and high-net-worth individuals, with the remaining 5% allocated to the public. He emphasized that the funds raised would help drive the company’s expansion, with planned investments exceeding EGP 5bn in the year following the IPO.
Bonyan’s real estate portfolio currently spans 142,000 square meters, valued at approximately EGP 14bn. This portfolio includes 75% office buildings and 25% commercial malls, with an impressive 92% occupancy rate. Notably, 60% of tenants are global corporations, while major Egyptian firms occupy the remaining space.
Since its acquisition in 2018, Bonyan has expanded rapidly—from just one property to ten, growing its total space from 55,000 to 142,000 square meters. During this time, the company has shifted from incurring losses to posting post-tax profits of EGP 2.9bn and a pre-tax profit of EGP 4bn, reflecting a robust annual growth rate of 60%.
Expansion Plans and Investor Strategy
Abdel Rahman also revealed plans for further growth post-IPO, with a focus on acquiring between 20,000 and 30,000 square meters of new office space in Cairo over the next year. CEO Shamel Abu Al-Fadl outlined the strategic focus on attracting institutional investors from Egypt and the Gulf region, particularly Saudi Arabia and the UAE.
“We aim to maintain a high free float for our shares, with 49% of the company’s equity potentially offered on the EGX,” Abu Al-Fadl stated. “Our distinguished tenant roster—including global giants like Nestlé, Vodafone, Johnson & Johnson, and McDonald’s—underscores the stability and strength of our real estate portfolio.”
Monitoring Growth in NAC
Fady Raafat, Managing Director of Financial Affairs, also highlighted the company’s focus on the New Administrative Capital, where Bonyan is considering expansion to meet the growing demand from international companies investing in the area. However, Raafat noted that Bonyan would remain flexible, potentially selling assets in locations where market conditions change.
“While we plan to retain our real estate assets for sustainable returns, we are always evaluating our portfolio and adapting to market trends,” Raafat explained. “Our ongoing efforts to attract foreign investment will continue to reinforce the strength of the Egyptian real estate market.”
