Angola has achieved a historic milestone in its ongoing privatization efforts, raising more than 20.8 billion kwanzas through the public sale of 29.754% of the share capital of Banco de Fomento Angola (BFA).
The process saw unprecedented demand, reflecting growing investor confidence in the country’s capital market.
According to a statement from the Debt and Securities Exchange (BODIVA), the demand for BFA shares “largely exceeded supply, setting the demand-to-supply coverage ratio at 506.37 percent, resulting in an allocation ratio of around 19.81 percent.”
The final unit price of the offer was fixed at 49,500 kwanzas, culminating in the sale of 4,462,500 shares.
The subscription period ran from 5 to 25 September.
Of the 11,006 subscription orders received, 10,133 were accepted, paving the way for 8,488 new shareholders to join BFA following the completion of physical and financial settlement on September 29.
From September 30, BFA shares will be officially admitted to trading on the Stock Exchange Market (MBA), allowing investors to place sale and purchase orders through BODIVA members.
This transaction forms part of Angola’s Privatization Program (PROPRIV), which aims to divest state-held assets via public offerings on the stock exchange.
BODIVA emphasized that the operation underscores its commitment to “the development and deepening of the capital market, remaining focused on promoting a regulated, transparent, and efficient environment, thus contributing to its strengthening.”
Market analysts describe the BFA sale as a landmark for Angola’s financial sector, highlighting both the level of oversubscription and the rapid inclusion of thousands of new shareholders as a sign of investor appetite for structured and transparent investment opportunities.
The success of this offering is expected to encourage further privatizations under PROPRIV, reinforcing the government’s agenda to mobilize private capital while promoting a broader culture of stock market participation in Angola.
The historic demand and robust subscription rates mark a turning point for BFA and for the country’s capital markets, suggesting a renewed confidence in Angola’s economic reform trajectory and the potential for deeper market engagement by both domestic and international investors.
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