Mozambique’s Cahora Bassa Hydro Company Issues Public Offering

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  • Mozambique’s state owned Hidroeléctrica de Cahora Bassa (HCB), which operates Mozambique’s largest hydro-electricity plant (2,060 MW) will be holding a public offering of 2.5% of the capital through 680 million actions at 3 meticais (€4 cents) each.
  • This is the first selling phase of 7.5% of the HCB capital.
  • The subscription is to take place from 17 June to 12 July and is addressed to Mozambican citizens, which is to be held on 17 July and the next day is the settlement.
  • The offering is managed by a consortium consisting of the Banco Comercial e de Investimentos (BCI) and Banco BIG.

“The decision of the shareholders makes available to Mozambicans a superb opportunity to acquire shares of a prosperous and healthy company,” in what will be the “biggest operation in stock” ever held in Mozambique, said Pedro Couto, the chairman of the HCB administration.

The operation “will certainly give a boost in the capital market in the country” and “more important than the number, the public offering shows economic empowerment of Mozambicans,” he said.

This will be HCB’s fifth public offering on the Mozambican Stock Exchange (BVM) and will be accompanied by dissemination campaigns aimed at explaining to the public how the process works. Admission to quotation is scheduled for 22 July 2019 and there is still no date for dispersion of the remaining 5% of capital to be taken to the stock exchange. See process and IOP timeline

Cahora Bassa is Africa’s fourth-largest artificial lake, situated in the Tete Province in Mozambique. The dam was built in 1969 and began operations from 1977. The hydroelectric power supplies South Africa and southern Mozambique with annual production at around 13,700 gigawatts (GWh). The facility has recently been affected by Cyclone Idai, which destroyed infrastructure including transmission lines. Read more

Author: Bryan Groenendaal

Source: Hidroeléctrica de Cahora Bassa (HCB)


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