The West African nation aims to raise as much as 121.3 billion CFA francs ($192.3 million) by offering up to 23.1 million shares.
- Benin plans to sell up to 40% of its stake in Banque Internationale pour l’Industrie et le Commerce (BIIC) through an IPO.
- The IPO aims to raise as much as 121.3 billion CFA francs ($192.3 million) with 23.1 million shares at 5,250 CFA francs per share.
- BIIC will become the second state-owned enterprise to go public and list on the regional stock exchange in Abidjan.
Benin plans to sell up to 40% of its stake in Banque Internationale pour l’Industrie et le Commerce (BIIC) through an initial public offering (IPO) to fund various development projects.
The West African nation aims to raise as much as 121.3 billion CFA francs ($192.3 million) by offering up to 23.1 million shares, according to a statement from the Finance Ministry.
The IPO, priced at 5,250 CFA francs per share, will be managed by EDC Investment Corp. and will run from January 13 to February 28, Bloomberg reported.
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BIIC will become the second state-owned enterprise to go public and list on the regional stock exchange in Abidjan, Ivory Coast’s commercial hub. This follows the successful listing of Loterie Nationale du Benin SA on December 13, which raised $69 million to support sports, cultural, and social initiatives.
As one of Africa’s leading cotton producers, Benin is exploring new avenues to finance its development post-COVID-19. Rising yields in developed markets have made borrowing more expensive for frontier and emerging markets.
Last year, Benin raised €350 million for environmental, social, and governance (ESG) projects through an innovative financing structure that reduced costs by 300 basis points compared to market rates.
BIIC, formed in 2020 from the merger of Banque Internationale du Bénin and Banque Africaine pour l’Industrie et de Commerce, is owned 51.3% by the government, 13.3% by the state pension fund, 32% by a state development fund, and 3.4% by the Port of Cotonou. The bank reported a net income of 27.2 billion CFA francs last year, more than double the previous year’s earnings.
