Cahora Bassa shares go on sale in June – AIM report

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Cahora Bassa shares go on sale in June – AIM report

12:13 CAT | 22 May 2019

Photo: @Verdade

Shares in Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi river, in the western Mozambican province of Tete, will go on public sale as from 17 June.

On Monday, representatives of HCB, of the Mozambican Stock Exchange (BVM) and of the banking consortium that will handle the sale, announced the formal launch of a promotion campaign ahead of the public sale, that will run from 17 June to 12 July.

92.5 per cent of the shares in HCB are owned by the Mozambican state, and that will not change. The other 7.5 per cent will be sold, but in stages. In June 2.5 per cent – 680 million shares will go on sale,

Cited in Tuesday’s issue of the Maputo daily “Noticias”, HCB chairperson Pedro Couto said the unit price of the shares will be three meticais (about 4.7 US cents). All Mozambican citizens, companies and institutions will be entitled to buy the shares.

Paulo Sousa, chairperson of the BCI (Commercial and Investment Bank), the main bank in the consortium, said that small investors can buy a minimum of 20 shares (costing 60 meticais), and a maximum of 7.500 shares (which will cost 22,500 meticais). For collective investors (such as companies), the minimum they can purchase is 20,000 shares.

Anybody wishing to buy the shares must present a valid Mozambican identity document, and have a Mozambican tax number (NUIT).

With the HCB share issue, the number of major companies traded on the BVM rises to five. The others are the main brewing company CDM (Beers of Mozambique), the Mozambican Hydrocarbon Company (CMH), the building company CETA, and the insurance company EMOSE.

According to the chairperson of the BVM, Salim Vala, about 7,150 investors are currently registered on the exchange. With the HCB share issue, he expects the number to rise to 40,000.

Source: AIM