After eight whole years since its establishment in 2014, the Angola Stock Exchange is finally set for the first Initial Public Offering (IPO) on its platform.
The IPO would be launched on June 9, 2022 by Angola’s largest bank Banco BAI, which is majority-owned by state-owned oil company Sonangol and diamond producer Endiama E.P.
In a statement released via its website, Banco BAI explained that both Sanongol and Endiama E.P will collectively issue 10% of their shares during the IPO. The shares will be priced at $41.75 each, bringing Banco BAI’s valuation to $972 million.
Business Insider Africa understands that equities trading on the Angolan bourse was initially planned to start in 2015. However, the country had to repeatedly postpone commencement due to a recession that was ravaging the economy.
According to Bloomberg, Angola finally exited its recession in 2021, even as global ratings agency, Moody’s, upgraded its credit score. More so, the International Monetary Fund (IMF) has projected that the country’s GDP would expand by 3% this year.
The Angolan Government now hopes that the IPO would open up the country’s equities market to an influx of foreign investors.
It should be noted that Africa remains one of the most attractive destinations for emerging markets investors.
There are about 29 stock markets located across the continent of Africa. Some of the best performing ones among them are: Lusaka Securities Exchange, Ghana Stock Exchange, Malawi Stock Exchange, Johannesburg Stock Exchange, The Egyptian Exchange, Nigerian Exchange Group, etc.
You may consider investing in any of these African stock exchanges.
