The subscription of the 2.5% Initial Public Offering (IPO) of the Cahora Bassa Hydroelectric Plant (HCB) in Mozambique of 680 million shares at 3 meticais each started on Monday and runs until 12 July, the company announced.
The subscription is focused on Mozambican citizens and companies, followed by clearance on 17 July and settlement the following day.
The admission to listing is scheduled for 22 July and there is no date for the sale of the remaining 5% of capital.
The operation will be led by a consortium made up of Banco Comercial e de Investimentos (BCI) and Banco BIG.
This will be only the fifth IPO of the Mozambique Stock Exchange (BVM), which has been open for 20 years.
HCB has fixed contracted sales of 1,100 megawatts (MW) per year to South African power company Eskom, 300 to Electricidade de Moçambique (EDM) and 50 to Zambia’s state power company Zeza.
Located on the Zambezi River in the central province of Tete, the Cahora Bassa dam – on which the company is based – is the largest in Southern Africa. Its construction began in 1969, during the colonial period, and it started operating in 1977.
The State holds 85% of HCB’s shares, 7.5% belong to Portuguese power grid company REN and another 7.5% are own shares. (Macauhub)