A market analyst has forecast that demand will outstrip supply in Angola’s largest-ever stock exchange offering — Unitel’s initial public offering (IPO) — despite warning that the telecom operator’s shares appear fundamentally overvalued at the stated offer price.
Analyst Silveira Nunda argued that strong demand is justified by the quality of the asset, mirroring the pattern seen in previous Angolan capital market transactions — a factor he described as key to the IPO’s likely success even at an elevated valuation.
Silveira Nunda highlighted that Unitel dominates the Angolan telecoms market, holding more than 70% market share with nationwide coverage.
The analyst recalled that in previous transactions on the Angolan market ‘demand always exceeded supply and the investor base always grew,’ citing the case of Banco de Fomento Angola (BFA), whose listing brought 8,488 new shareholders into the market.
He cautioned, however, that a fundamental assessment of the business reveals an overvaluation at the price currently set for the offering.
According to the analyst, Unitel’s operating profit represents less than half of the company’s net profit for the year, with the bottom line heavily influenced by the company’s financial investments — notably dividends received from BFA.
‘That ends up making the company relatively expensive at the price currently being applied,’ he said, adding that the valuation implies the business must grow by at least twice per year.
Assuming a sustainable and constant growth trajectory, he continued, the company is ‘very expensive,’ and it would make more financial sense to place capital in another instrument — a reading that, he cautioned, ‘not all investors fully grasp.’
Silveira Nunda noted that institutional investors, who assess business fundamentals, may conclude that it makes more sense to allocate capital to another asset offering a more sustainable return.
Nevertheless, he concluded, demand should exceed supply given the quality of the asset, though there is no guarantee as to the magnitude of that oversubscription.
Unitel launched the sale of 7.5 million shares on Monday, representing 15% of its capital, targeting proceeds of approximately 300 billion kwanzas (€281.9 million).
The unit price ranges between 36,000 kwanzas (€33.8) and 40,000 kwanzas (€37.5). The public offering period is scheduled to close on 24 July, with the final price to be set on 27 July.
Unitel, Angola’s largest telecoms operator, holds approximately 73% of the market, has been in operation for 25 years and counts nearly 21 million customers. In 2025, the company recorded a net profit of more than 158 billion kwanzas (€148.5 million).
The operator is currently owned by two shareholders: the Angolan state, with a 50% stake held through the Institute for State Asset and Shareholding Management (IGAPE), and state oil company Sonangol, which holds the remaining 50% through MS Telecom and PT Ventures, each with a 25% stake.
Of the 15% of shares now on offer, 2% are reserved for employees and 13% for the general public. Eight entities are distributing the securities, and the company’s stock market debut is scheduled for two days after the final price is set.
Source: Notícias ao Minuto / Original article: www.noticiasaominuto.com
