Angola’s national oil company (NOC), Sonangol, has affirmed its plans for an initial public offering (IPO) of up to 30% on the country’s BODIVA Debt and Stock Exchange by 2027, in a bid to attract international investors to the continent’s largest oil-producing economy.
Initially planned for before 2022, Sonangol’s IPO will mark a new era of growth for the Angolan NOC, signaling regained stability for the state parastatal – following H.E. President João Lourenço’s restructuring program since taking office in 2017 – and demonstrating the government’s commitment to attracting international partners and investors.
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“The company’s diagnosis has been concluded and the necessary roadmap for the process of listing the company on the stock exchange, up to a total of 30%, has been defined,” stated Sonangol CEO, Sebastião Gaspar Martins, adding, “Sonangol’s IPO should take place as soon as the conditions to do so are created… Due to the necessary prior tasks, we anticipated that, by 2027, this process can be completed.”
With Sonangol expected to have improved its 2022 financial performance, which is due for release in February, following a net profit increase to $2.1 billion in 2021, Gaspar Martins indicated that several investment banks and financial institutions have shown strong interest in supporting Sonangol’s listing process.
Sonangol’s planned issuance on BODIVA will total $150 million in bonds and “will also serve as a test for the requirement to prepare a prospectus, although with less stringent requirements,” Gaspar Martins.
Currently undergoing ambitious reforms to privatize dozens of assets within the country’s state-dominated economy, Angola has seen renewed growth following the end of a five-year recession in 2021 and its credit rating has been upgraded by bond credit rating business, Moody’s Investors Service.
The move to list Sonangol on the national stock exchange comes as a number of foreign majors are expected to continue operations in the southern African country following the extension of several concessions, including Chevron’s 20-year extension deal for Block 0, and the formation of Azule Energy, a joint venture between leading oil and gas companies, bp and Eni.