More Africa NewsIn Angola, the government announces the IPO of Unitel in 2024

February 11, 2024by myles0

Angolan telecoms company Unitel will be listed on the stock market this year alongside 23 other public companies. The decision arises from the first meeting of the year of the National Interministerial Commission for the Privatization Program (PROPRIV). It was announced on Tuesday, February 6, by Ottoniel dos Santos, Secretary of State for Finance and Treasury.

It was in April 2023 that the Angolan government revealed its intention to privatize Unitel via an listing on the Angolan Debt and Securities Exchange (BODIVA). The state became the sole owner of the company in October 2022 after President João Lourenço nationalized the shares of businesswoman Isabel dos Santos and General Leopoldino Fragoso do Nascimento who each held 25% of the company’s capital. .

Unitel’s IPO is part of the privatization program for public companies initiated in 2018. The State has set itself the mission of selling its stakes in the capital of 195 companies in order to restructure and resize the public business sector in Angola. In the field of ICT, Multitel, MS Telecom, ACS — Angola Comunicações e Sistemas, Angola Telecom and Angola Cables are also targeted.

The IPO should improve Unitel’s governance. It should also make it easier for the company to raise capital to finance its expansion, invest in new technologies and improve its services. The company will thus be able to strengthen its position in the Angolan telecoms market of which it is the leader according to data from the Angolan Institute of Communications (INACOM).

As of September 2023, the company had 18.5 million mobile subscribers to its credit for a market share of 71.8%. Its competitors Africell and Movicel hold 24.1% and 4.1% market shares respectively. In the mobile broadband segment, Unitel has a market share of 65.7%, compared to 6.5% for Movicel and 27.8% for Africell.

Source: Agency EcoFin

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