• BRVM-listed lender launches CFA1.5 billion capital increase

• Move aims to meet regulatory requirements and strengthen balance sheet

• Operation comes as new majority shareholder backs recovery strategy

Alios Finance Côte d’Ivoire, a leasing-focused financial institution listed on the BRVM, has launched a CFA1.5 billion ($2.7 million) capital increase, the company announced on April 13. The transaction will involve the issuance of 3,750,000 new shares at a unit price of CFA400.

The operation will take the form of a public offering, with priority given to existing shareholders through preferential subscription rights. Each current shareholder will have the option to subscribe in order to maintain their stake. In practical terms, for every 13 existing shares, investors will be able to acquire 6 new ones. These rights will be tradable on the BRVM between April 27 and June 9, while subscriptions will remain open until June 11, 2026.

A response to regulatory pressure

The capital increase is primarily aimed at strengthening the company’s equity base to improve its financial position and comply with regulatory requirements. The move follows a directive from the WAEMU Banking Commission requiring the company to raise its share capital by at least CFA1 billion.

Recent financial performance also helps explain the decision. Between 2022 and 2024, the company posted negative operating and net results, although there was a notable improvement in 2024. Operating income remained in deficit, with a sharp deterioration in 2023, while net losses narrowed significantly to CFA165 million in 2024, compared with CFA579 million a year earlier.

Beyond regulatory compliance, the capital increase is intended to support a broader recovery strategy, as the company undergoes a shift in ownership. In December 2023, the Credaf Group became the majority shareholder after acquiring a 52.02% stake previously held by Alios Finance SA. This change is expected to play a key role in repositioning the company and supporting future growth.

Reinforcing a leading market position

Alios Finance CI holds a leading position in the leasing market, with total assets of CFA73.3 billion in 2024, representing more than half of the national market, or 52.2% of the combined balance sheets of comparable financial institutions.

The capital increase is expected to strengthen the company’s ability to meet growing customer demand. Following the operation, equity will rise from CFA5.2 billion as of December 31, 2024, to CFA6.7 billion.

With operations across several African markets, including Côte d’Ivoire, Cameroon, Senegal, and Gabon, Alios Finance CI is looking to use this stronger financial base to support the expansion of its activities and respond to rising demand for tailored financing solutions.

Chamberline Moko