Shares in Banco Caixa Geral Angola (BCGA), in particular the 25% owned by Sonangol, the state oil and gas company, are from Thursday available for trading on the stock market – an operation that is expected to bring in almost €48 million to Sonangol coffers.
Angola’s minister of finance, Vera Daves, said that the operation, as well as making it possible for Sonangol to raise 20,197,000,000 kwanzas (€47.8 million), would also make it possible for 693 investors, including bank employees, to become shareholders in BCGA.
The session for admission to trading of BCGA shares, via the Angolan Debt and Securities Exchange (Bodiva), represents the culmination of the public offering for sale of the Angolan state’s stake as part of the Privatisation Programme (ProPriv), according to the Angolan authorities.
ProPriv, the minister noted, thus has “the power to make it possible, via a public offering on the stock exchange, for shares in leading national companies to be sold competitively, at the same time as boosting the capital market.”
The initial public offering comprises 5,000,000 shares representing the 25% of BCGA’s share capital held by oil company Sonangol.
According to Daves, with BCGA’s admission to Bodiva, the stock market now has new investment opportunities, also for small investors, “consolidating a long-desired path for the capital market to provide, in fact, alternatives for financing projects.
“This funding and investment alternative will be all the more robust the broader and more effective the financial education of all Angolans, in terms of knowledge of all the alternatives for savings and investment, as well as the inherent risks,” she said.
According to Daves, despite the current delicate economic moment, made worse by the challenges of the global geopolitical situation, the government is pleased with the results achieved in the processes of privatising financial sector companies.
This was the third privatisation of financial assets, via Bodiva, after the privatisation of 100% of the shares of BCI (Banco Comércio Angola) via a stock exchange auction, and the public offering for sale of 10% of the shares of BAI (Banco Angolano de Investimentos).
Angola’s minister of state for economic coordination, Manuel Nunes Júnior, said at the time that making BCGA shares available for trading on the stock market bolstered its role as a “transparent and efficient mechanism” for financing companies.
“The indicators of this operation are a positive sign of the confidence and expectations of investors in the Angolan economy and their interest in diversifying the sources of profitability of their savings, through investment in new financial instruments,” the minister said, adding that “reforms in Angola will continue in order to consolidate macroeconomic stability and to introduce the structural changes that are needed in our economy, in order to make it less and less dependent on oil.”
The 25% stake is for three groups of investors with 15% of the company’s shares earmarked for existing Angolan shareholders, 2% for employees and board members, and 8% for the general public.
According to the BCGA chairman, Francisco Rosado dos Santos, the price was appropriate for the dynamism of the market: “We tried to find a price – and comparing it with the other share that is listed – that would allow a member of the Angolan general public who wanted to buy, to do so without great discomfort to their personal finances.”
The Portuguese state, via Caixa Geral de Depósitos, is the biggest shareholder in Caixa Angola, with the remaining capital held by Angolan businessmen António Mosquito and Jaime Freitas (12% each), Sonangol EP (24%) and Sonangol Holding.