Angola targets $320 million in biggest-ever IPO with Unitel listing

Angola has launched the largest public share offering in its history, seeking to raise up to $320 million through the sale of a 15% stake in Unitel SA, the country’s biggest telecommunications operator, as the government pushes ahead with reforms aimed at deepening capital markets and reducing its reliance on oil revenues.

The offering comprises 7.5 million shares, with an indicative price range of 36,000 to 40,000 kwanzas per share, according to BFA Capital Markets, a subsidiary of Banco de Fomento Angola (BFA), which co-owns Unitel. The share sale, which closes on July 24, could raise as much as 300 billion kwanzas ($320 million), according to Bloomberg.

Unitel, which serves more than 21 million subscribers, came under state control in 2022 after the Angolan government seized the shares held by Isabel dos Santos, daughter of former President José Eduardo dos Santos, and former army general Leopoldino “Dino” Nascimento.

The seizure formed part of President João Lourenço’s broader anti-corruption campaign, which has targeted assets linked to the country’s former political elite. Dos Santos, once Africa’s richest woman, has continued to challenge the asset seizures in courts across multiple jurisdictions.

The Unitel sale is part of Angola’s wider privatisation programme aimed at attracting investment, improving public finances, and strengthening the country’s capital markets.

Last year, Angola raised $239 million from the partial privatisation of Banco de Fomento Angola (BFA), the country’s second-largest bank by assets. The government has also signalled plans to partially privatise state-owned oil giant Sonangol and diamond producer Endiama in the coming years.

For Angola, Africa’s third-largest crude oil producer, expanding its capital markets has become a key pillar of economic diversification.

The Unitel offering is expected to increase public participation in one of the country’s most valuable companies while providing the government with fresh funds to support its budget.

A successful listing could also boost investor confidence and pave the way for future listings of large state-owned enterprises, helping Angola build a deeper and more liquid domestic stock market.