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The Regional Stock Exchange of the Central African Economic and Monetary Union (CEMAC), known as the Bourse Régionale des Valeurs Mobilières (BRVM) has a new member: Oragroup.
Oragroup is a pan-African banking group present in 12 countries across Central Africa with 149 banks branches and approximately two thousand employees. Even though the banking sector in Africa is the most underdeveloped in the world, progress is being made daily, and more and more economic actors are working towards financial inclusion through the deployment of innovative solutions, appropriate to the issues facing the African population.
Oragroup is one of those organizations. In November 2018 the group carried out a public offering of shares which was 100% subscribed. This public offering included the issuance of 6,097,561 new shares, through a capital increase, and the sale of 7,785,445 existing shares on the secondary market at a price of CFAF 4,100 per share, representing a CFAF 56.92 billion (€86 million) fundraising on the regional financial market. At present, 20% of Oragroup's capital is listed on the stock exchange (floating capital). The group's other current shareholders retain 80% of the capital, including pan-African investor Emerging Capital Partners, which will remain the main shareholder with more than 50% of the shares.
This introduction shows that African finance is increasing and “that we are witnessing the emergence of an authentic Afrocapitalism, capable of intensifying and accelerating the continent's growth, and its profound and sustainable transformation for the wider benefit of the populations” as Vincent Le Guennou, Chairman of the Board of Directors of Oragroup and Co-CEO of Emerging Capital Partners put it. Moreover, this capital increase will for instance allow Oragroup to invest more heavily in digital banking, which is widely practiced in Africa, and support the equity capital of some subsidiaries.
The African banking market is strengthening, and these kinds of operations suggest that this trend is likely to increase in the years to come.