Africa-Press – Cape verde. The Cape Verdean deputy prime minister today led the launch session at the Cape Verde Stock Exchange for the Public Offering (OPV) of 27.44% of the shares of the bank Caixa Económica, part held by the State in one of the largest banks from the country.“This is the fulfillment of a promise we made when temporarily purchasing the shares we currently hold in Caixa Económica, through the Treasury. We did so, at the time, for reasons of public interest”, said Olavo Correia, who is also Minister of Finance and Business Development and Minister of Digital Economy.
The 27.44% portion of Caixa’s share capital placed in OPV corresponds to the part that the Cape Verdean Government acquired, in January 2020, from the Macanese company Geocapital.
The State indirectly holds other shares in Caixa through the National Social Security Institute (INPS, 47.21%), the main shareholder, and Correios (15.14%).
“We are here, today, facing a process that does not constitute a new decision, but we are returning to the private sector the shares they already held at the time”, said Olavo Correia.
The OPV is also part of the privatization and strategic partnerships policy presented in 2022.
The operation launched today runs until February 23rd and the public presentation of results is scheduled for February 29th.
There will be 381,904 shares in distribution with a sales price of 4,080 escudos (around 37 euros), with the bank presenting a ‘book value’ (a value that is indicated as an approximate real book value) of 5,392 escudos (around 48.9 euros) per share.
The OPV was presented as an “opportunity” for residents, diaspora and foreigners “looking for Cape Verde to invest”, added Olavo Correia.
“I think we are facing an excellent opportunity and it is very important that we increase private participation in the capital of a bank. This is well seen by the market, by employees and by all ‘stakeholders’ [intervenientes] and we thus open doors for new partnerships and access to instruments reserved for companies that have a strong participation in the private sector”, he said.
At the ringing of the bell that symbolized the launch of the OPV, Olavo Correia was flanked by the president of the Cape Verde Stock Exchange (BVC), Miguel Monteiro, and the Minister of Communities, Jorge Santos, in a sign that the Government intends to project the operation with the diaspora.
“The Government of Cape Verde also has on its agenda the privatization of several companies, from different sectors of activity: we hope that such operations will continue to be carried out preferably through the Stock Exchange”, said the president of the institution.
Miguel Monteiro recalled that the last public offer for the sale of shares took place at the end of 2019, when the State sold 21,000 shares it held in the oil distributor Enacol.
“At the time, demand was six times greater than supply, with 184 purchase orders being submitted, of which around 90% were given by individuals,” he said.
The results achieved at the time were “a sign of the public’s interest in investments of this kind and another piece of information that leads us to believe in the success of the operation” launched today, he concluded.
Caixa is one of the largest Cape Verdean banks, with net assets of 84.7 billion escudos (771 million euros), own funds reaching seven billion escudos (63 million euros) and a solvency ratio of 24.30% (as of September 30, 2023), indicators that, according to the Government, represent “great economic and financial solidity”.
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