Oragroup to make the largest IPO in BRVM's history

Banking

Friday, 19 October 2018 19:24

Oragroup to make the largest IPO in BRVM's history

(Togo First) - The Lomé-based pan-African banking group Oragroup announced it received approval from the Regional Council on Investments and Financial Markets (CREPMF), to launch its initial public offering on the Regional Securities Exchange (BRVM) in Abidjan.

“The subscription operated by the Management and Intermediation Companies (SGI) will take place from 29 October to 16 November, with the possibility of early closing in the event of oversubscription, for a share listing in February 2019, subject to validation by the BRVM,” said the company which operates in 12 Western and Central African countries.

Opening of 20% of the capital

In total, Oragroup plans to open 20% of its share capital, which it estimates at CFA56.92 billion (€86 million), in a public auction (OPV). The operation concerns 13,883,006 shares, including 6,097,561 new shares and 7,785,445 existing shares, which will be respectively sold on the primary and secondary markets of the regional stock exchange, at CFA4100 per share.

The remaining 80% of the capital will still be held by current shareholders. With this transaction, Oragroup will become the largest IPO on the Abidjan Stock Exchange since its inception in 1998.

Binta Touré Ndoye, the company’s Managing Director, said this capital increase will consolidate growth and support development. The company thus intends to invest in digital banking, strengthen its presence in Central African countries, increase its reputation among the financial community and the general public, and strengthen the equity capital of certain subsidiaries.

Positive performances

Since 2014, the group has been remarkably doing well, with a 45% increase in balance sheet total to CFA1794 billion (€2.72 billion) at the end of 2017.

Over this period, net banking income increased by 33% to CFA108 billion (€164 million). Motivated by this growth, net income has more than quadrupled in three years, reaching CFA21.97 billion (€33 million) last year.

Oragroup's latest performance is promising. Last year, a 45% increase in profit enabled the group to distribute dividends to shareholders.

Let’s note that following the transaction, Emerging Capital Partners (ECP) is expected to retain more than 50% of Oragroup's shares.

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