Finance

IPO under-subscription will not change La Régionale’s universal banking plan, credible sources reveal

IPO under-subscription will not change La Régionale’s universal banking plan, credible sources reveal
Wednesday, 14 April 2021 17:02

On March 26, 2021, microfinance institution  La Régionale concluded its IPO operation on the Douala-based exchange BVMAC. Although the microfinance institution shied away from giving too much information about the outcomes of the concluded operation, on April 14, 2021, specialized media Ecomatin revealed that La Régionale raised only XAF2.5 billion out of the XAF8.2 billion sought.  

During the communication campaign carried out throughout the whole IPO operation, Charles Rollin Ombang Ekath (director and chief executive officer of La Régionale) used to remind that the aim of the operation was to increase the microfinance institution’s capital from XAF8.04 billion to over XAF15 billion to transform La Régionale into a universal bank.

However, despite the massive communication campaign launched by the microfinance institution and the introduction of innovative subscription methods (like mobile money), investors were not really attracted by La régionale’s shares.  Nevertheless, that failure will not affect the institution’s plan to become a universal bank, credible sources indicate.  

Indeed, if the institution’s current capital (which is XAF8.04 billion) is coupled with the XAF2.5 billion raised on the BVMAC, La Régionale’s capital will exceed the XAF10 billion minimum capital required for banks operating in the CEMAC region.

Should the microfinance institution’s aim come to fruition, this will be the second major actor the local sector is losing within two years (the first is CCA which became a bank in 2018).   

BRM

On the same topic
Uganda plans to borrow around $2.5 billion for major infrastructure and energy projects. The loans involve the World Bank’s IDA, Citibank, and...
CDC-CI Capital invests CFA800 million in Julaya through convertible bonds. The fintech will expand payment, cash management, and SME credit...
Enko Capital closes first round of $100 million for its private credit impact fund. British International Investment, IFC, and African pension...
South Africa, Mauritius top 2025 Africa financial markets index Only 9 of 28 markets improved scores amid global uncertainty Rwanda, Ethiopia...

Most Read
01

BYD to install 200-300 EV chargers in South Africa by 2026 Fast-charging stations powered by grid...

China's BYD Plans 300-Station EV Charging Network for South Africa
02

Drones to aid soil health, pest control, and input efficiency High costs, skills gap challenge ac...

Kenya Plans National Drone Rollout to Modernize Farming
03

• Parliament approves Virtual Asset Service Providers Bill 2025 to regulate digital assets• Central ...

Kenya passes landmark law to regulate booming cryptocurrency market
04

• The five-year plan allocates 388 billion pulas to boost growth and jobs.• Focus areas include tran...

Botswana unveils $27bn plan to accelerate economic diversification
05

• The Bank urges Nigeria to raise excise taxes on alcohol, tobacco, and sugary drinks.• Current rate...

World Bank backs higher public health taxes in Nigeria
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.