Angolan Capital Markets: Stock Trading on BODIVA Remains Modest

Angolan Capital Markets: Stock Trading on BODIVA Remains Modest 

The Angolan stock market (BODIVA) saw the IPO of minority stakes in two Angolan banks in 2022. These stakes belonged to two public companies and the deals were part of the Angolan government’s privatization process (PROPRIV). These two banks are the first two companies to be listed on BODIVA.

The first IPO took place in June 2022 when Banco Angolano de Investimentos (BAI) placed in the market 1,945,000 of its shares, representing 10% of its share capital and with a nominal value of AKZ 8,100 each. This stake belonged to Sonangol (8.5%) and Endiama (1.5%).

Total demand in this operation reached 3,072,020 shares resulting from the interest of a total of 2,852 investors. This means that demand exceeded supply by 1.58x, with the total amount offered by these investors reaching AKZ 62,360,564,800. The 1,945,000 shares were allocated to those investors that offered a price equal to or greater than the Final Unitary Price set in the Prospectus (AKZ 20,640). These investors totaled 842, with the shares entirely sold at the Final Unitary Price. This corresponds to a cash-in of the entire offered amount of AKZ 40,144,800,000.

BAI requested BODIVA for these shares to be admitted to trading in the stock market in early-June 2022, with trading of the first shares effectively occurring on June 13^th.

The second IPO occurred in September 2022 after Banco Caixa Geral Angola (BCGA) placed in the market 5,000,000 of its shares, representing 25% of its share capital and with a nominal value of AKZ 3,000 each. This 25% stake belonged to Sonangol.

Of these 5,000,000 shares, there were 3,000,000 shares, representing 15% of BCGA’s share capital and voting rights (and 60% of the shares in this IPO), reserved for the bank’s Angolan shareholders. There were also 400,000 shares (2% of the share capital and 8% of the offer) reserved to BCGA employees and the remaining 1,600,000 shares (8% of the share capital and 32% of the offer) were reserved to the public. 

The price reserved to the Angolan shareholders stood at AKZ 3,399 while the Final Unitary Price for the public and bank employees was AKZ 5,000. This means that the Angolan shareholders had a discount of 32% to the Final Unitary Price.  

The results of the IPO showed that the entire 3,000,000 shares were allocated to the Angolan shareholders, while only 63,345 shares were subscribed by employees (16% of the offered amount). The remaining 336,655 shares not subscribed by employees went to the public, which meant that the total number of shares available to the public reached 1,936,655.

Total demand from the public in this operation reached 4,037,775 shares. This means that demand exceeded the initial supply (of 1,600,000 shares) by 2.52x.

Overall, this operation resulted in a total cash-in amount of AKZ 20,197,000,000.

BCGA requested BODIVA for these shares to be admitted to trading at the end of September 2022, with trading of the first shares effectively taking place on October 3^rd.