Banco Angolano de Investimentos raises $94 million in the country’s first IPO

(Ecofin Agency) – Eight years after the start of its operations, the Angola Stock Exchange welcomes its first IPO. Banco Angolano de Investimentos sold 10% of its shares to investors. These shares were indirectly held by the Angolan State, which is definitely exiting the bank’s capital.

Angola’s largest bank in terms of assets and business volume, Banco Angolano de Investimentos (BAI), raised approximately $94 million, in the sale of 10% of its capital on Angola Debt And Stock Exchange, Angola’s main stock exchange, several Angolan media reported.

A total of 1.9 million ordinary shares representing 10% of BAI and held indirectly by the Angolan State, through its subsidiaries Sonangol Holdings (8.5%) and Endiama (1.5%) were sold on the stock exchange. to investors. Each share was sold at 20.640 kwanzas ($48.4). This corresponds to a total amount of 40.1 billion kwanzas (approximately $94 million) obtained by Sonangol and Endiama, after the sale of their shares. The subscription period for these shares was from May 16 to 27, 2022.

The transaction represents the country’s first IPO. It comes eight years after the launch of the operations of the Angola Debt and Stock Exchange, in December 2014. Through this operation, the Angolan State leaves the capital of BAI, in which it indirectly held shares.

After BAI, the Angolan State should also divest from the capital of three other banks in which it holds significant shares. These are Banco de comercio e industria (BCI), Banco Caixa Geral Angola (BCGA) and Banco Economico (BE). This measure follows the conclusion in 2018 of a financial assistance program between the State and the International Monetary Fund (IMF).

One of the measures of this agreement was the privatization of strategic national enterprises held by the State. Apart from banking establishments, several other sectors of activity are affected by this vast privatization program undertaken by the Angolan State.

Outside the Angolan banking market, BAI, founded in 1996, is also present through subsidiaries in Portugal, Cape Verde and Sao Tome and Principe. BAI also has shares in numerous financial and non-financial institutions in Angola and abroad.

Despite the departure of the State, other minority shareholders retain their shares in the capital of BAI. These include Oberman Finance Corp, which holds 5% of the shares, Dabas Management Limited, 5% of the shares and Theodore Gilleti, 5% of the shares. As of June 30, 2021, BAI had total assets of 3,118 billion kwanzas, a market share of 18.7% at the end of 2020.

Chamberline MOKO

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.