The subscription to the Initial Public Offering of 2.5% of the shares representing the capital of the Cahora Bassa hydroelectric plant (HCB) ends on Friday, according to the operation’s official schedule.
The sale of 680 million shares, which can be acquired at 3.0 meticais each, is reserved for Mozambican citizens or companies, and the clearance of the operation is scheduled for 17 July with settlement on the following day.
The announcement of the entry of new Mozambican shareholders into HCB’s capital was made in November 2017 by the President of the Republic, Filipe Nyusi, at a ceremony that marked the tenth anniversary of the agreement signed between Portugal and Mozambique, which approved the change in the shareholder structure of the facility.
The listing of the shares, led by a syndicate made up of Banco Comercial e de Investimentos (BCI) and Banco BIG, is scheduled for 22 July and there is no date set to float the remaining 5% of capital.
The idea is to sell a total of 2.040 billion shares in the company, which correspond to 7.5% of the share capital, and the Chairman of the Board, Pedro Couto, said that the results of this first phase should dictate the way the next share sales will be carried out, and the price of each share may increase.
Located on the Zambezi River in the central Mozambican province of Tete, the dam is the largest in Southern Africa. Construction began in 1969 and the hydroelectric facility has been in operation since 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)