The 25 percent of the share capital held by Sonangol in Banco Caixa Geral Angola (BCGA) is up for auction, with the public offering period for the sale of shares runs from 5 to 16 September, on the Angola Debt and Securities Exchange (BODIVA) , whose supervision is being carried out by the Capital Markets Commission.
To that end, Banco Caixa Geral Angola and the Instituto de Gestão e Participações do Estado (IGAPE) made official yesterday, in Luanda, the process of selling 24 percent of shares held by Sonangol EP and 1 percent by Sonangol Holding.
The initiative is part of the Privatization Program in place since 2019, which aims to support the development of the Angolan capital market. In the national market for 29 years, BCGA is the second company and bank listed on the Angola stock exchange, whose process aims to sell five million shares out of a total of 20 million, which constitute its share capital.
Mode of sale
According to the executive director of BCGA, Francisco dos Santos, there is a batch of three million shares reserved for current Angolan shareholders, corresponding to 15 percent of the capital, and a batch of 400,000 shares for the bank’s employees, corresponding to 2 percent of the bank’s shares. The manager revealed the existence of 1,600,000 shares intended for the general public, corresponding to 8 percent of the bank’s share capital, and shares not subscribed in the first two lots can be transferred to the lot of shares offered to the general public.
“The shares that will be the subject of this offer, regardless of the lots, grant equal rights to their future holders under the terms of the bank’s statutes. The shares acquired by the current Angolan shareholders will be unavailable for a period of not less than 120 days”, he informed.
He added that each investor in each lot may submit only one purchase order, and in the case of the tranche for current Angolan shareholders, they may acquire a minimum of 100 and a maximum of one million and 500 thousand shares each.
“In the case of the tranche for workers, they will be able to acquire a minimum of 25 shares and a maximum of 20 thousand shares each”, he explained. For the general public, Francisco Santos stressed, investors may purchase a minimum of 25 and a maximum of 200,000 shares. Purchase orders must be expressed in multiples of five. From the beginning of the second week of the offer, on the 12th of September, orders transmitted that have not been revoked or changed will become irrevocable.
The price range defined by the Initial Public Offering (IPO) was between 4,250 and 5,000 kwanzas, with the final price being fixed at the price that makes demand equal to or greater than supply within the respective range. If demand is lower than supply, the final price will be the lowest represented in orders received within the specified range. finished. If demand exceeds supply, there will be an apportionment, and all orders with a price equal to or greater than the final price of the offer will be satisfied, in accordance with the principle of proportionality between the express order and the quantity offered (apportionment factor). BCGA is the first private banking institution to operate in the national market after independence, and is present in eight provinces with 30 branches, supported by a workforce of 500 workers. IGAPE reaffirms its commitment to privatizing assets with transparency The Instituto de Gestão e Participações do Estado (IGAPE) will continue to ensure that the privatization of shares in companies of national reference is carried out through transparent processes, preferably by the Stock Exchange.
According to PROPRIV’s financial sector coordinator, Ednilson Sousa, during the official launch ceremony of the process of selling the shares held by the national oil company in Banco Caixa Geral Angola, IGAPE has already sold 125 companies and State assets. . “This process has changed over time, as initially, in 2019, the privatization program had been published and, later, in 2020, in June, the sale of shares was defined through the limited tender by prior notice. qualification, this in respect of the rights enshrined by shareholders, as stipulated in the bank’s statutes and existing shareholder agreements”, he said after guaranteeing easier and broader access to the category of investors. In the spirit of the commitment signed by IGAPE, Ednilson Sousa advanced, a process of negotiations was launched with the shareholders so that “we could guarantee the sale through this procedure which, in our point of view, would be the most ideal for the type of assets that we had the mission to privatize”.
He informed that, from June 2020 to December 2021, numerous negotiations took place that allowed, in December 2021, the consent of the shareholders of Banco Caixa Geral Angola to adopt the nature of a publicly-held company, thus revoking the rights preferably existing shares, and allowing the wider sale of shares, giving access to workers, governing bodies and the general public.
The official gave a positive note to the shareholders “for their innovative spirit”, and who were able to help in the process of dynamizing the capital market, allowing the bank to be placed at the level of transparency of the Stock Exchange, “as can be seen through the prospectus of the offer, which was approved by the Capital Markets Commission (CMC) on 31 August 2022”.
He appealed to investors to actively participate in the process, taking advantage of the opportunity to invest and become a shareholder in a solid bank. “With a rich history in the market, through the privatization program it is possible to ensure that all of us, the general public, and workers have access to this investment opportunity”, he pointed out.
