Mozambique Energy: Delayed entry of Cahora Bassa hydroelectric in local Stock Exchange

The Public Offering (IPO) of shares corresponding to 7.5 percent of the share capital of the Cahora Bassa Hydroelectric Dam (HCB) in Mozambique Stock Exchange (BVM) is delayed. “We must avoid giving information that eventually will give advantage to certain people” tried to clarify clarified the HCB CEO, Pedro Couto.

When in November last year President Filipe Nyusi announced that the capital of the largest state-owned company would be open to citizens, businesses and Mozambican institutions, after the initial surprise the expectation was that HCB could be admitted to the Mozambique Stock Exchange (BVM) in 3-6 months, the normal time considered in a process of its kind by the institution headed by Salim Valá.

After more than nine months the only public is that the company hired the consortium composed of Banco Comercial e de Investimentos (BCI) and BIG Bank to lead the banking syndicate to OPV.

“At this point we have not spoken much of it for the reason that the regulations on this matter imposes a certain restraint on the information until the final aspects are taken care of by the competent authorities which are the Bank of Mozambique and the Stock Exchange” tried to explain this Friday Pedro Couto, CEO of HCB.

Speaking to reporters, and partners, at the Annual Meeting on the Company’s performance in 2017, Couto did not mention in which stage the process is, neither managed to provide any information whether the OPV would yet take place in 2018.

“At the time when the prospectus is approved by the Bank of Mozambique it will publicly be disseminated to all (…) We must avoid giving information that eventually will give advantage to certain people,” he concluded.