Mozambique: Cahora Bassa IPO distinguished as incentive for economic inclusion

Login

Register

http://www.clubofmozambique.com/

Mozambique: Cahora Bassa IPO distinguished as incentive for economic inclusion

8:04 CAT | 06 Mar 2020

File photo: Lusa

DealMakers Africa, a platform that analyses the African business market, distinguished Hidroelétrica de Cahora Bassa for the operation of the Public Offering (IPO) of shares, considering it an incentive for the “economic inclusion of Mozambicans”.

The operation was distinguished with the Special Recognition Award, due to “the reach to non-banking citizens, the innovative nature of making use of remote channels [‘mobile banking’] and the exceptional results it achieved,” reads a statement from the institution.

The IPO of 7.5 % of Hidroelétrica de Cahora Bassa (HCB) capital was launched in July 2019 by the company, through the Mozambique Stock Exchange, and is considered the largest transaction in the Mozambican capital market ever registered, with a total of 17,000 Mozambican investors, according to the institution.

In the initial phase, the transaction was launched in a tranche of 4%, aimed exclusively at Mozambicans, with subscriptions having been registered in 142 of the 152 districts, corresponding to 92%.

The state holds 85% of HCB’s shares, 7.5% belong to the National Energy Networks (REN), Portugal’s energy transport company, and the remaining 7.5% are shares made available in the IPO.

Energy production at HCB in 2019 grew by 7.3% in relation to the previous year, despite having missed the target set due to the impact of cyclone Idai, which killed 600 people and devastated various infrastructures in central Mozambique.

Source: Lusa