(Ecofin Agency) - In addition to taking over its sister company Sonatel (Senegal)'s position as the most valued company on the BRVM, Orange Côte d'Ivoire is also reinforcing its parent company Orange's status as a key player in the WAEMU financial market.
With Orange Côte d'Ivoire recently getting listed on the WAEMU regional securities exchange (BRVM), French group Orange's subsidiaries are now weighing 40.4% of the capitalization of this common market as of December 30, 2022.
Indeed, the government of Côte d'Ivoire offered a part of its shares in Orange Côte d'Ivoire for sale at XOF9,500 (US$15.5) per share, marking the telecom company's debut on the exchange. At the end of its first trading day, the per-share value rose 7.41% to reach XOF10,210 and the company's market capitalization reached XOF1,538.2 billion (US$2.5 billion), according to a communique published by the BRVM.
At the same time, the market capitalization of SONATEL (Orange's subsidiary based in Senegal) was XOF1,520 billion. The combined valuation of those two subsidiaries was then XOF3,058.2 billion on the BRVM whose capitalization was XOF7,560.2 billion at the time.
The arrival of the Ivorian telecom operator on the BRVM will boost the telecom sector's weight on the financial market. It is also likely to cause a change in the capital allocation strategy of investors (index funds included). Until December 30, 2022, when Orange Côte d'Ivoire was listed, the S&P Côte d'Ivoire BMI was made up of 32 listed companies; 47% of those companies operate in the finance sector, which accounts for the highest number of companies listed on the securities exchange. Meanwhile, the telecommunication sector was weighing only 25.5% thanks to Sonatel and Onatel, the Burkinabe subsidiary of Moov Africa.
Today, January 2, 2023, the Orange Côte d'Ivoire share was still rising and the company is expected to confirm its position as the most valuable company on the stock market in the WAEMU zone, consolidating Orange Group's position as a key player in the regional stock market.