Bonyan will be making its EGX debut “by late February or, at the latest, April,” CEO Tarek Abdel Rahman said at a press conference yesterday attended by EnterpriseAM. The announcement shortly follows the Compass subsidiary and real estate invest firm receiving preliminary approval for a temporary listing last week in preparation for its upcoming IPO.

We should soon hear more about how much Bonyan is offering and for how much, with financial details of the offering set to follow Baker Tilly’s — as the independent financial advisor — completion of its fair valuation of the company within a week, Abdel Rahman said. The exact share percentage and offering proceeds will depend on the fair valuation currently underway.

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But what we do know is that Bonyan is looking towards Egypt and the Gulf for interested buyers, with a particular focus on Saudi Arabia and the UAE for the offering’s promotional campaign.

And that 95% of the shares offered will be allocated to private placements, with the remaining 5% available through a public offering.

What’s the money for? Bonyan plans to acquire 20k-30k sqm of leasable space annually, valued at over EGP 4 bn, compared to its current 15k sqm. The company is negotiating agreements for 4-5 buildings and will prioritize administrative and logistics spaces, given rising demand. International expansion is off the table for now, as “the Egyptian market offers untapped opportunities,” Abdel Rahman said, but a future real estate fund could be on the horizon.

This comes in addition to Bonyan’s existing portfolio of 146k sqm of built-up space across ten buildings in east and west Cairo, valued at EGP 14 bn as of December 2024. The company focuses heavily on administrative buildings, which make up 73% of its leasable areas.

Abdel Rahman thinks that Bonyan will be a welcome and attractive addition to the EGX, explaining that "real estate is underrepresented on the EGX, despite contributing 18.5% to GDP over the past decade.” With real estate delivering 17% real returns over the past decade, Abdel Rahman thinks that investor appetite will be strong.

Bonyan’s CEO also thinks that the company has some important differences to other already listed real estate companies, pointing to the company’s focus on income-generating assets with strong tenants and USD-linked rental contracts, totaling around 56%. The company also avoids construction risks by acquiring fully or partially leased properties and manages to purchase assets 30-40% below market value, according to Abdel Rahman. Bonyan’s shares offer investors a liquid and flexible way to invest in real estate, Abdel Rahman said.

And it’s keen to point to its strong financials, with Abdel Rahman saying that Bonyan reported a net profit of EGP 2.9 bn in 2024, fueled by gains in property valuations and rental income. Its EBITDA margin rose to 94% in 2023 from 61% in 2021, with a 69% net income margin in 2023. The company will also allocate EGP 1 bn alongside IPO proceeds to fund future acquisitions.

For Bonyan, time is of the essence, and an IPO is a way to fast track the company’s expansion plans, as opposed to raising capital via debt or equity increases.

ADVISORS- CI Capital and Arqaam Capital are leading the IPO as coordinators and bookrunners, with Mubasher acting as the offering agent. Legal advisory is being provided by Matouk Bassiouny & Hennawy, while Baker Tilly is the independent financial advisor preparing the fair valuation.

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