Tropigalia shares to be sold on stock market, in a first for a private Mozambican company – Photos

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Tropigalia shares to be sold on stock market, in a first for a private Mozambican company – Photos

3:57 CAT | 11 Oct 2022

All photos: Courtesy of Bolsa de Valores de Moçambique

Tropigalia is to sell more than three million shares, equivalent to 10% of its shareholder structure. Yesterday, the company officially launched its Public Subscription Offer, an operation to be carried out through the Mozambique Stock Exchange.

The company was born 18 years ago in Mozambique, and its food products have since then become part of life for many Mozambican families. Now, Tropigalia wants Mozambicans to be more than just customers; it wants them to become part-owners of the company.

To this end, between October 17th and November 4th, 10% of Tropigalia’s shares will be made available for the public to buy. Specifically, 3,078,507 shares are available, valued at 360 million meticais.

Young people up to 30 years of age by December 31 will have priority, with a sale period dedicated only to this cohort, during which young people will pay less for the shares.

Each share costs 120 meticais, but, for a young buyer between October 17th and 21st, only 100 meticais. After this period, prices will be standardised at 120 meticais. The minimum lot is 50 shares per investor, and the maximum 10,000.

The shares that the firm has distributed are Class B preference shares, which, unlike ordinary shares, do not have voting rights, but come with other ‘privileges’. “They carry a 10% bonus in the distribution of dividends,” says founder and majority shareholder of Tropigalia, Adolfo Correia.

In other words, “whoever invests in our operation, which already has 18 years of experience, does so to obtain dividends and not to manage the company: that responsibility remains strictly [the same] as it has been over the past 18 years”.

Addressing dignitaries, potential investors and guests, Adolfo Correia, the firm’s founder and majority shareholder, spoke about the company, what it is now and its projected future is, in numerical and operational terms. So far, the firm has grown 26% annually, but more is expected in the near future. This will definitely enliven any stock exchange!

“It is a company that is in the hands of all of us and has been painting a success story, from the point of view of governance and performance,” said Salim Valá, chairman of the Board of Directors of the Mozambique Stock Exchange.

This is the first Public Subscription Offer carried out by a privately held company in Mozambique, following five by companies wholly or partly owned by the state.