Bonyan is looking to pull in EGP 3 bn from its IPO, including EGP 2.5 bn from a secondary offering and EGP 500 mn from the sale of newly-issued shares, CEO Tarek Abdelrahman told Al Arabiya in an interview (watch, runtime: 5:55). Bonyan is on track to be the first pure-play real estate operating company (REOC) to list on the local bourse in what would also be the first and only IPO on the EGX so far this year. Shares are set to begin trading around 30 June, the CEO said.

The two-tranche offering will be open to both institutional (95%) and retail investors (5%), Abdelrahman said. The real estate investment firm will direct proceeds from the capital hike to grow its portfolio and acquire new administrative buildings. The CEO didn’t disclose when the subscription period will begin.

REMEMBER- Mubasher pegged the fair value price at EGP 7.94 per share, according to a note seen by EnterpriseAM. While the 551.3 mn shares on offer — good for a 33% stake — are being sold by Bonyan’s sole shareholder Sky Realty Holding, a post-IPO capital hike will see the Compass subsidiary reinvest a portion of the IPO proceeds back into Bonyan.

Market fundamentals support the move: Abdelrahman pointed to strong fundamentals in the commercial real estate market, citing a 6.5 mn sqm in annual demand-supply gap for office space in Egypt. Demand is estimated at 9.5 mn sqm annually, while supply stands at just 3 mn sqm.

ADVISORS- CI Capital and Arqaam Capital are leading the IPO as coordinators and bookrunners, with Mubasher acting as the offering agent. Matouk Bassiouny & Hennawy is serving as counsel.

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