ENSA launches Public Offering with a valuation between 15.6 and 30 billion Kz.
After several dates tested for the privatization of ENSA, the State, through the State Participation Management Institute (IGAPE), is launching the IPO. The first date announced for the privatization of ENSA was the end of 2019, within the scope of the entry into force of PROPRIV.
This week, the National Insurance Company of Angola (ENSA) launched a public offering (IPO), within the framework of the Privatization Program (PROPRIV) which foresees the sale of 3% of the shares of the insurance company to the market, in values ranging from 15.6 billion to 30 billion Kwanzas.
The figures are included in a range proposed for the public offering of 30% of the capital, noting that the company's current share capital is 12 billion Kz, 2.4 million shares with a nominal value of 5,000 Kz. In this operation, 720,000 shares will be put up for sale, 672,000 in the offer aimed at the public (28%) and 48,000 in the offer aimed at employees (2%).
According to the prospectus made available on the ENSA website last Friday, offers with values per share between 6,499.8 and 12,499.8 Kz per share and for a minimum lot of 5 shares will be accepted, which represents a gross financial value that will range from 4.68 billion to 9 billion Kz. This is an amount that will revert in its entirety to the State, as a shareholder, and will not be included in the company's accounts.
The final price of the shares corresponds to the minimum value that equals or exceeds the number of shares made available in the offer to the public. In practical terms, the offers start to be counted from the highest values per share and, when these total 672 thousand, the final price is set by the offer with the lowest value. If demand is lower than supply, the price is set by the lowest value received in the purchase orders, provided that this is within the range referenced above.
Purchase orders submitted within the scope of the offer to employees must not show a value, only the number that is proposed to be purchased, since the value of each share will be defined in the process described above, and the payment for which will benefit from a 5% discount. At the maximum limit, each share in this scope will cost 11,874.81 Kz.
Employees who have an employment relationship with the company (even if this is temporarily suspended) and members of ENSA's corporate bodies, in accordance with the insurer's current articles of association, are considered eligible to participate in this offer. The prospectus also warns that "it is the responsibility of the Issuer and the Placement Agents to control the status of the Employee for the purposes of the Offer addressed to Employees. To this end, the Issuer must share a list of employees eligible for this offer (including employees and members of the corporate bodies)".
The process is underway
The deadline for submitting purchase intentions began on Tuesday, and in the offer addressed to the public, no investor may submit an offer or the sum of several offers, exceeding 239,999 shares. Purchase intentions must be made through the intermediary agents - Standad Invest, BFA Matkets and Áurea - and they will be the ones who will make the connection with BODIVA (see box).
In addition to the proposed value for each share, there are also costs for investors for intermediation (0.25% + 14% VAT) paid to the chosen agents, subscription (0.20% + 14% VAT) paid to BODIVA, and settlement (0.045% + 14% VAT) paid to CEVAMA. In practical terms, for the maximum value of 12,499.8 Kz, there are 35.6 Kz for intermediation, 28.5 Kz for subscription and 6.4 Kz for settlement, a total of 70.5 Kz per share. In other words, an increase of approximately 0.56% on the value of the offer.
Do not forget that it is necessary to have an active custody account, and that the value of the offer must be deposited and will remain captive until the end of the operation. It is also important to remember that purchase orders may be changed or revoked up to 4 days before the deadline, October 21st (3:00 p.m.), and from that time onwards, proposals are considered final and irrevocable. The deadline for submitting purchase proposals is 3:00 p.m. on October 25th.
Expansion
ENSA launches Public Offering with a valuation between 15.6 and 30 billion Kz
After several dates tested for the privatization of ENSA, the State, through the State Participation Management Institute (IGAPE), is launching the IPO. The first date announced for the privatization of ENSA was the end of 2019, within the scope of the entry into force of PROPRIV.
This week, the National Insurance Company of Angola (ENSA) launched a public offering (IPO), within the framework of the Privatization Program (PROPRIV) which foresees the sale of 3% of the shares of the insurance company to the market, in values ranging from 15.6 billion to 30 billion Kwanzas.
The figures are included in a range proposed for the public offering of 30% of the capital, noting that the company's current share capital is 12 billion Kz, 2.4 million shares with a nominal value of 5,000 Kz. In this operation, 720,000 shares will be put up for sale, 672,000 in the offer aimed at the public (28%) and 48,000 in the offer aimed at employees (2%).
According to the prospectus made available on the ENSA website last Friday, offers with values per share between 6,499.8 and 12,499.8 Kz per share and for a minimum lot of 5 shares will be accepted, which represents a gross financial value that will range from 4.68 billion to 9 billion Kz. This is an amount that will revert in its entirety to the State, as a shareholder, and will not be included in the company's accounts.
The final price of the shares corresponds to the minimum value that equals or exceeds the number of shares made available in the offer to the public. In practical terms, the offers start to be counted from the highest values per share and, when these total 672 thousand, the final price is set by the offer with the lowest value. If demand is lower than supply, the price is set by the lowest value received in the purchase orders, provided that this is within the range referenced above.
Purchase orders submitted within the scope of the offer to employees must not show a value, only the number that is proposed to be purchased, since the value of each share will be defined in the process described above, and the payment for which will benefit from a 5% discount. At the maximum limit, each share in this scope will cost 11,874.81 Kz.
Employees who have an employment relationship with the company (even if this is temporarily suspended) and members of ENSA's corporate bodies, in accordance with the insurer's current articles of association, are considered eligible to participate in this offer. The prospectus also warns that "it is the responsibility of the Issuer and the Placement Agents to control the status of the Employee for the purposes of the Offer addressed to Employees. To this end, the Issuer must share a list of employees eligible for this offer (including employees and members of the corporate bodies)".
The process is underway
The deadline for submitting purchase intentions began on Tuesday, and in the offer addressed to the public, no investor may submit an offer or the sum of several offers, exceeding 239,999 shares. Purchase intentions must be made through the intermediary agents - Standad Invest, BFA Matkets and Áurea - and they will be the ones who will make the connection with BODIVA (see box).
In addition to the proposed value for each share, there are also costs for investors for intermediation (0.25% + 14% VAT) paid to the chosen agents, subscription (0.20% + 14% VAT) paid to BODIVA, and settlement (0.045% + 14% VAT) paid to CEVAMA. In practical terms, for the maximum value of 12,499.8 Kz, there are 35.6 Kz for intermediation, 28.5 Kz for subscription and 6.4 Kz for settlement, a total of 70.5 Kz per share. In other words, an increase of approximately 0.56% on the value of the offer.
Do not forget that it is necessary to have an active custody account, and that the value of the offer must be deposited and will remain captive until the end of the operation. It is also important to remember that purchase orders may be changed or revoked up to 4 days before the deadline, October 21st (3:00 p.m.), and from that time onwards, proposals are considered final and irrevocable. The deadline for submitting purchase proposals is 3:00 p.m. on October 25th.
Expansion
What's Your Reaction?
AED
CAD
CNY
DKK
EUR
GBP
MZN
NAD
NOK
USD
ZAR