[2019-07-18] IPO of the Cahora Bassa Hydroelectric plant to list 4.0% of the company on the stock market

Source: Macauhub

High demand has led the Cahora Bassa Hydroelectric (HCB) facility to increase the number of shares included in the Initial Public Offering (IPO) from 2.5% to 4.0%, said the chairman of the board of directors in Maputo on Wednesday.

Pedro Couto said that the remaining 3.5% of the 7.5% initially planned for sale should be sold in 2020, “after analysing the process of placing the first tranche and determining the timing and conditions of placement of the second.”

The Mozambican Stock Exchange recorded 16,787 subscription applications for, with a just over 1.51 billion shares purchased, with HCB raising a nominal amount of 4.531 billion kwanzas (US$72.3 million).

The chairman of the Board of Directors of the Mozambique Stock Exchange, Salim Valá, said the operation was a success, “with national citizens showing that they have a say in the capital market of the country.”

The market capitalisation of the eight companies listed in the BVM is around US$1.54 billion, currently representing 9.5% of the country’s Gross Domestic Product (GDP).