The five listed companies have lost approximately Kz 260 billion in market value since 23 June, as investors freed up liquidity to participate in Unitel’s Public Offering. The market is repositioning itself for the largest initial public offering in BODIVA’s history, in what is expected to be a key test of the maturity of Angola’s stock exchange.
The Angola Debt and Securities Exchange (BODIVA) is experiencing one of the most significant moments in its relatively short history. Since 23 June, virtually all listed companies have seen their share prices decline—a movement that, at first glance, could be interpreted as a sign of weakening investor confidence. The reality, however, appears to be quite different.
The decline in share prices has closely coincided with preparations for the Public Offering (OPV) of a 15% stake in Unitel, suggesting that investors are not exiting the stock market but rather repositioning their portfolios ahead of what will be the largest Initial Public Offering (IPO) ever conducted in Angola.
An analysis of BODIVA data shows that the correction began after dividend distributions and intensified as the Unitel subscription period approached. Between 23 June and 13 July, ENSA recorded the steepest decline, with its shares falling by 18%, followed by Banco Caixa Angola (BCGA), whose stock lost 14.5%.
BAI shares declined by 6.9%, while Banco BFA and BODIVA proved more resilient, posting losses of just 2.7% and 3%, respectively. BODIVA data as of 13 July showed that downward pressure on share prices remained. BAI shares closed at Kz 94,005, Banco Caixa Angola at Kz 19,500, BODIVA at Kz 77,500, BFA at Kz 101,500, and ENSA at Kz 28,500. The figures indicate that the market had not yet experienced a broad recovery, with the correction continuing at varying degrees across all five listed stocks.
This type of market behaviour is relatively common in more developed financial markets when a major public offering is announced. Investors often sell existing holdings to raise liquidity and participate in an IPO considered particularly attractive. Rather than attracting new capital into the market immediately, such transactions typically trigger a temporary reallocation of existing investment.
This appears to be exactly what is happening in Angola. Unitel represents an asset with characteristics that differ significantly from those of the companies currently listed on the exchange. It is the country’s largest telecommunications operator, with assets exceeding Kz 1.42 trillion and net profits of Kz 158.4 billion in 2025. The offering comprises 7.5 million shares, representing 15% of the company’s share capital, with an indicative price range of between Kz 36,036 and Kz 40,040 per share.
Short-Term Profit Expectations
There is also a psychological factor helping to explain this shift in liquidity. Angola’s equity market remains relatively small and shallow, with a large proportion of investors focused on generating capital gains over relatively short investment horizons. Rather than maintaining diversified portfolios for many years, many investors seek to maximise returns from each new market opportunity by temporarily reallocating their capital to the asset they believe offers the greatest potential for immediate appreciation.
In Unitel’s case, these expectations are supported by several factors. Above all, the company’s size and the strong interest the offering has generated among both retail and institutional investors suggest that demand is likely to far exceed the number of shares available. With only 15% of the company’s share capital being offered to the public, many investors expect the issue to be heavily oversubscribed, resulting in significant pro-rata allocations and substantially reducing the number of shares ultimately awarded to each subscriber.
Source: Expansão
