Bonyan’s share price closed flat on debut yesterday

Bonyan made its long-awaited debut on the EGX yesterday under the ticker BONY.CA, opening at EGP 4.96 and trading within a tight range despite broader price movement bands. Shares hit an intraday high of EGP 5.15 before closing the session largely flat at EGP 4.97 a pop. Total trading volume came in at 67.9 mn shares (that’s 18% of the 363 mn shares debuted) executed across 10.3k trades.

Bonyan’s uneventful debut came despite the stock being granted a wider trading band, permitted to rise or fall by up to 40% — double the usual market limit — on its first day with no circuit breakers in place to curb volatility. Starting today, Bonyan shares will be subject to the same trading rules as the rest of the market.

Cheap, but no spark: Despite a favorable valuation, Bonyan’s debut was dragged down by a lack of catalysts, a muted real estate outlook, and investor preference for short-term visibility, Hany Genena, head of research at Al Ahly Pharos, told EnterpriseAM. Whether it gains traction may depend less on fundamentals and more on when and how it can prove its liquidity-generating capabilities, Genena explained. “From a valuation standpoint, the stock is cheap,” Genena said. Based on Bonyan’s share price, the average valuation per sqm in its portfolio stands around EGP 94-95k. “When you compare this to real estate prices in West or East Cairo — where the market speaks of EGP 200k per sqm and above — the offering came at nearly half the market rate,” Genena explained.

Not attractive to yield-seeking investors, until there’s visibility on liquidity: “All real estate companies, and even others outside the sector, tend to face skepticism around cashflow visibility,” he explained, citing a broader liquidity crunch. Bonyan, which announced it will not distribute dividends for at least two to three years due to ongoing expansion plans and outstanding liabilities, may have inadvertently alienated yield-seeking investors, Genena added. “This is why you see the markdown. Investors don’t expect short-term payouts, and without clear catalysts, they’re hesitant,” he noted.

Broad-based market decline dragged Bonyan with it? The EGX30 slipped 0.96% yesterday, pulling back after hitting consecutive all-time highs at Sunday and Monday’s close. Weighing further on the real estate sector was a surprise decision by the New Urban Communities Authority (NUCA) to impose fees of up to EGP 1k per sqm on new hospitality developments in the North Coast. Although Bonyan is not directly exposed — with its portfolio centered on income-generating administrative and logistics assets — the announcement dampened sentiment across the broader real estate space.

“The market tends to paint the sector with a broad brush,” Genena explained. “Even if a company isn’t directly affected, sentiment matters — and [yesterday], sentiment was poor.” Genena emphasized that this wasn’t a case of bad timing or a poor summer window for IPOs. “It’s not about summer or winter, Ramadan or Christmas — if the asset is good, it will trade well regardless of the season. Timing is not the issue. The market just isn’t convinced there’s a near-term upside.”

Who bought in? Its recent private placement attracted strong demand from major institutional investors, including Dar Al Handasah (which acquired 13% of the offering), Saudi Arabia’s Olayan Group, CI Capital, Arqaam Capital, Azimut, Al Ahly Pharos, Mubasher, and funds affiliated with Arqaam Financial, Al Borsa reports citing Chairman Shamel Aboul Fadl as saying. Financial institutions took 60% of the placement, with the remaining 40% allocated to high-net-worth individuals.

ICYMI- Bonyan priced its IPO at the lower end of its range (EGP 4.96) suggesting plenty of upside for buyers given the independent financial advisor said a fair value looks more like EGP 7.52. The EGP 1.8 bn IPO had generated strong demand from both institutional and retail investors. The listing was accompanied by a solid 1Q earnings release, with rental and service charge revenues up 51% y-o-y to EGP 158.9 mn and gross asset value rising to EGP 16.6 bn, up from EGP 15.96 bn at the end of 2024.

MEANWHILE- Bonyan is raising EGP 250 mn through a capital increase fully subscribed by its main shareholder, Sky Realty Holding, in a bid to support the firm’s expansion plans, Aboul Fadl added. Bonyan is entering the local logistics sector with the planned acquisition of an existing warehouse, part of a broader strategy to diversify income and boost recurring revenues, according to Aboul Fadl. The company is also nearing a transaction to acquire an administrative building in East Cairo worth up to EGP 1 bn, expected to close within two months.