CI Capital Holding (CICH.CA), Egypt’s leading diversified financial services group, announced the successful execution of the EGP 1.80 billion initial public offering (IPO) of Bonyan for Development and Trade (“Bonyan” or the “Company”), a leading real estate investment company on the Egyptian Exchange. CI Capital acted as Joint Global Coordinator and Bookrunner, advising Bonyan on the transaction.
The offering represented c. 22% of Bonyan’s shares amounting to 362,903,226 shares, at a price of EGP 4.96 per share, implying a market capitalization at the opening bell of EGP 8,204mn.
The offering included 344,758,065 shares allocated to qualified institutional and high net-worth investors in Egypt and abroad (the “Institutional Offering”), while the public offering included 18,145,161 shares allocated to retail investors in Egypt (the “Retail Offering”). The Institutional book building closed on July 13th, generating c. EGP 12.0 billion of demand, representing a coverage ratio of c. 6.88x , while the retail offering closed on July 16th, recording an exceptional coverage ratio of c. 33.7x. Accordingly, total orders for the private and public offering of Bonyan exceeded 2.98 billion shares, or EGP 15.0 billion in aggregate demand, implying a blended coverage ratio of 8.2×1.
Following the conclusion of the offering, a closed subscription will take place, wherein the selling shareholder will subscribe to 50,403,226 newly issued ordinary shares (the “Closed Subscription”) at the Offer Price.
“The IPO of Bonyan is a testament to investors’ appetite for novel business models and differentiated investment opportunities marking another step towards enhancing market breadth and depth and broadening investor participation.” Stated, Amr Helal, CEO of the Investment Bank (Sell-Side) at CI Capital.
“This latest transaction further strengthens CI Capital leadership role in raising capital across market cycles, having successfully concluded similar transactions with a total value exceeding EGP 14bn in the past 5 years.” Added Amr.
“This landmark transaction highlights CI Capital’s ECM capabilities, leveraging our comprehensive and well-integrated functions across the investment bank to deliver seamless deal execution to our IB clients. We are proud of our longstanding partnerships with leading institutional clients across the Egyptian market, and we remain committed to our collective growth and success, going forward.” Stated, Adel Abbas, Investment Banking Executive Director at CI Capital.
Bonyan is a pioneering, independent real estate investment firm dedicated to creating value through the strategic acquisition and active management of commercial assets. The Company offers an effective and efficient investment solution for institutions and individuals seeking exposure to the Egyptian real estate market. By providing access to a diversified, professionally managed commercial real estate portfolio, Bonyan enhances the benefits of real estate investment while mitigating associated risks.
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