• Angola’s BFA launches $239M IPO, largest in BODIVA history
• Sale includes 4.46M shares, valuing bank at $801 million
• IPO part of 2023–2026 privatization push to diversify economy

Angolan bank Banco de Fomento Angola (BFA) began its local stock market listing process on Friday, September 5, as part of the country's 2023-2026 national privatization program (ProPriv).

The IPO, which is the largest ever on the Bolsa de Dívida e Valores de Angola (BODIVA), is expected to raise up to 220.8 billion kwanzas ($239 million) through the sale of 4.46 million ordinary shares, representing a 29.75% stake. The offering values BFA, the country's second-largest bank by total assets, at about $801 million.

The share price was set between 41,500 kwanzas ($44.8) and 49,500 kwanzas. The subscription period will run until September 25, 2025, with a listing expected on September 30.

The Angolan state holds an indirect 51.9% stake in BFA through telecommunications operator Unitel, while the Portuguese bank Banco Português de Investimento (BPI) holds 48.1% of the capital.

As part of the IPO, Unitel is selling a 15% stake in BFA, while Banco BPI, a subsidiary of Spain's Caixabank, is selling a 14.75% stake. BPI has been trying to sell its stake in BFA since 2017 following a recommendation from the European Central Bank (ECB) to reduce its exposure to Angola.

The IPO is part of the second phase (2023-2026) of the ProPriv privatization program, which began in 2019. The program not only aims to attract foreign capital but also to open up strategic sectors to competition to stimulate growth and reduce the Angolan economy's heavy dependence on oil.

BFA, which will be the third Angolan bank to be publicly traded after Banco Angolano de Investimento (BAI) and Caixa Angola, posted a net profit of 205.8 billion kwanzas in 2024, with a return on equity of 33.7%, according to data presented to investors on Thursday.

Founded in 2014, BODIVA currently has only four listed companies. The stock exchange mainly serves as a market for issuing government bonds.

Walid Kéfi