Four years after the launch of Angolan Debt and Securities Exchange (BODIVA), the country has finally established domestic stock exchange. With this, Angola expects its first ever initial public offerings this 2019.
This comes after the privatisation of multiple state companies.
“There are very clear signals that there will be initial public offerings this year,” said Patricio Vilar, Chief Executive Officer of the Bodiva exchange who noted that the bourse expects two initial public offering’s to take place this year with a larger, unspecified, number set for 2020.
Bodiva already serves as an exchange for the primary and secondary trading of Angolan state debt, but it has not previously operated a stock exchange.
Since 2006, the country proposed The Angolan Stock Exchange, with hopes that it will start in the first quarter of the 2008 fiscal year. However this was not feasible, partly due to the effects of the credit crunch, and its opening was postponed to 2009 and then 2010, with the intention to list ten companies. By July 2013, Archer Mangueira, chairman of the Capital Markets Commission of Angola, said that Angola plans to start the Angola Stock Exchange trading on 2016 but this was not realized.
The country had previously noted that it was looking to privatise as many as 74 state companies in an effort to attract foreign investment and revitalise an economy that was plunged into a consecutive three-years of recession that lasted till 2018 after oil price fell in 2014.
According to the Angolan Industry Ministry’s coordinator of the Centre for Capital Markets, António Cruz Lima, The Angolan Stock Exchange (BVA) will likely be launched in the third trimester of this year with ten listed companies and an initial capitalisation of more than $6 billion. The BVA will be located in Luanda, the political and economic capital of Angola.
Lima also noted that the government can expect to collect about $ 940 million in taxes from stock market activities. The bourse is expected to boost investments in the country as well as bring a shift from state banks to the private sector and capital markets, “We think that with the advent of the coming privatisations of well-known companies we will see a rapid change in the way companies finance themselves,” said Vilar.