As many as 12 new companies will list on the West African regional stock exchange over the next five years, including three this year, Chief Executive Officer Edoh Kossi Amenounve said.
Two banks from Ivory Coast and an energy company from an unspecified country are expected to begin trading their shares on the Abidjan-based bourse before the end of 2016, Amenounve said at the Bloomberg Africa Business and Economic Summit in Cape Town on Wednesday.
The BRVM has outperformed peers in Ghana and Nigeria, making it one of the few bourses on the continent to post a gain in the past year. The BRVM Composite Index climbed 18 percent in 2015, as Nigeria’s All Share Index dropped 17 percent and Ghana’s Composite Index declined 12 percent. The regional exchange is heavily weighted in banks, telecommunications and other companies that have few ties to oil, which fell to a 14-year low last month.
Amenounve said Africa needs five to 10 listings a year to develop its equity markets. Last year, there were nine offerings outside South Africa.
“The number of IPOs on the continent is very low,” Amenounve said. Government can help stock exchanges grow by privatizing more companies and working more closely with private equity funds to use domestic markets to exit their investments, he said.
Mozambique’s stock exchange expects as many as five new listings under a plan it introduced in 2012 to encourage oil and gas companies to offer as much as 20 percent of their equity to domestic investors. The plan is set to be completed by next year, CEO Anabela Chambuca said at the conference.