UNITEL’s IPO Marks a New Era for Angola’s Capital Market
Angola is set to witness a historic event as the state-owned telecommunications company, UNITEL, prepares to launch its Initial Public Offering (IPO). This move is expected to raise 300 billion kwanzas through the sale of 7.5 million shares, representing 15% of the company’s share capital. The announcement was made by Paulo Graça e Silva, an executive at BFA Capital Markets, during the launch ceremony held in Luanda.
A Significant Milestone
According to Paulo Graça e Silva, the share price will range between 36,000 and 43,000 kwanzas. This marks the largest public offering in Angola’s history, surpassing the previous record set by Banco Angolano de Investimento (BAI) in 2022, which raised just over 120 billion kwanzas. Notably, this IPO also represents a shift in the country’s capital market, which has traditionally been dominated by financial sector companies. UNITEL will be the first entrant from the telecommunications segment, according to the executive.
Who Can Participate?
Starting this Monday, Angolan citizens and foreign residents in Angola can begin submitting their subscriptions for the IPO. To qualify, participants must hold a Tax Identification Number (NIF), have a local bank account, a custody account with intermediary agents, and sufficient funds to execute the share purchase transaction. The executive noted that there is strong demand anticipated for UNITEL shares, given the inquiries received from individual, corporate, and institutional investors.
Structure of the IPO
The IPO is part of the Privatization Program (PROPRIV) and will run until the 24th of this month. The offering is directed at both employees and the general public. A total of 1,000,000 shares—representing 2% of UNITEL’s share capital and voting rights—are reserved for employees. For the general public, 6,500,000 shares have been allocated, representing 13% of the company’s share capital and voting rights.
UNITEL’s Role in Angola
With over 21 million customers and a nationwide presence, UNITEL is one of the most significant and recognized brands in Angola. The company currently has three shareholders, and through this IPO, millions of Angolans will have the opportunity to join the two current shareholders—IGAPE and Sonangol—and contribute to the operator’s growth.
Key Stakeholders
The launch event was attended by representatives from several key institutions, including the Angolan Insurance Regulation and Supervision Agency (ARSEG), the Institute for the Management of State Assets and Participations (IGAPE), UNITEL, the Capital Market Commission (CMC), the Angola Debt and Securities Exchange (BODIVA), and the financial intermediaries involved in the operation. These include BFA Capital Markets (BFACM), Áurea, and Banco Caixa Geral Angola (BCGA).
Current Landscape of the Stock Exchange
Currently, five companies from the financial sector are listed on the country’s stock exchange: BAI, ENSA, Banco Caixa Geral Angola, BFA, and BODIVA. With UNITEL’s IPO, the capital market is poised for expansion into new sectors, signaling a promising future for investment opportunities in Angola.
