Oragroup to make the largest IPO in BRVM's history

Banking

Friday, 19 October 2018 19:24

Oragroup to make the largest IPO in BRVM's history

(Togo First) - The Lomé-based pan-African banking group Oragroup announced it received approval from the Regional Council on Investments and Financial Markets (CREPMF), to launch its initial public offering on the Regional Securities Exchange (BRVM) in Abidjan.

“The subscription operated by the Management and Intermediation Companies (SGI) will take place from 29 October to 16 November, with the possibility of early closing in the event of oversubscription, for a share listing in February 2019, subject to validation by the BRVM,” said the company which operates in 12 Western and Central African countries.

Opening of 20% of the capital

In total, Oragroup plans to open 20% of its share capital, which it estimates at CFA56.92 billion (€86 million), in a public auction (OPV). The operation concerns 13,883,006 shares, including 6,097,561 new shares and 7,785,445 existing shares, which will be respectively sold on the primary and secondary markets of the regional stock exchange, at CFA4100 per share.

The remaining 80% of the capital will still be held by current shareholders. With this transaction, Oragroup will become the largest IPO on the Abidjan Stock Exchange since its inception in 1998.

Binta Touré Ndoye, the company’s Managing Director, said this capital increase will consolidate growth and support development. The company thus intends to invest in digital banking, strengthen its presence in Central African countries, increase its reputation among the financial community and the general public, and strengthen the equity capital of certain subsidiaries.

Positive performances

Since 2014, the group has been remarkably doing well, with a 45% increase in balance sheet total to CFA1794 billion (€2.72 billion) at the end of 2017.

Over this period, net banking income increased by 33% to CFA108 billion (€164 million). Motivated by this growth, net income has more than quadrupled in three years, reaching CFA21.97 billion (€33 million) last year.

Oragroup's latest performance is promising. Last year, a 45% increase in profit enabled the group to distribute dividends to shareholders.

Let’s note that following the transaction, Emerging Capital Partners (ECP) is expected to retain more than 50% of Oragroup's shares.

Fiacre E. Kakpo

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.