The Public Offering (IPO) of 29.75% of Banco de Fomento Angola (BFA) shares on the stock exchange, concluded last week with proceeds totaling 242 million US dollars, was the largest operation carried out in the country and in Africa this year, according to the Angola Debt and Securities Exchange (BODIVA).
In a statement, BODIVA described the transaction as a landmark achievement in the development of the domestic capital market and as proof of the potential, growing strength, and credibility of African stock exchanges.
It added that the size of the offering and the remarkable demand from investors reflect confidence in the institution and highlight the role of the Angola Debt and Securities Exchange as a robust, transparent, and secure investment and financing platform.
Demand for the 4,462,500 BFA shares sold in the primary market reached a demand-to-offer coverage ratio of 506.37%, peaking at 1.1 billion US dollars.
The offer coverage ratio stood at 1.09, meeting 10,300 of the 11,009 bids submitted.
This was the first transaction involving international offers, although more than 99% of the total offering was secured by domestic funds.
Currently, BODIVA’s stock market lists five companies: Banco Angolano de Investimento (BAI), Banco Caixa Angola (BCGA), BFA, insurance company ENSA, and BODIVA itself.
The total market capitalization of the Angolan stock exchange stands at 3.37 billion US dollars.
Source: Angop
