Algerian Lender BDL Set for Public Listing in $450M IPO

BREAKING NEWSJanuary 20, 2025 at 10:47 AM UTC

TLDR

Banque de Développement Local (BDL) will launch a partial public offering on the Algiers Stock Exchange today January 20
The listing aims to diversify the investor base, with allocations split among individual investors, companies, and professional investors
Six public banks and three private companies will manage the share sales, and a nationwide communication campaign will encourage participation

Banque de Développement Local (BDL) will launch a partial public offering on the Algiers Stock Exchange today January 20, representing a key step in modernizing Algeria's banking sector. The offering aims to raise 61.88 billion dinars (around $453 million) by selling 44.2 million shares for 1,400 DA each.

The listing aims to diversify the investor base, with allocations split among individual investors, companies, and professional investors. The initiative will boost BDL's share capital by 30%, increasing it from 103.2 billion to 147.4 billion dinars. The move aligns with broader efforts to modernize the banking sector, attract domestic investors, and make Algeria’s financial market more competitive on a global scale.

The move has been validated by the Conseil des Participations de l'État (CPE) and approved by Cosob, which ensures compliance with regulatory standards. Six public banks and three private companies will manage the share sales, and a nationwide communication campaign will encourage participation. This partial capital opening is seen as a major advancement for Algeria’s financial sector, setting the stage for future listings and strengthening investor confidence.

You can follow Daba’s reporting on Africa on WhatsApp. Sign up here

Key Takeaways

BDL’s public offering highlights Algeria’s broader strategy to revamp and diversify its financial ecosystem. By increasing capitalization and engaging a wide range of investors, the initiative is a step toward creating a more transparent and dynamic market. The offering follows Crédit Populaire d'Algérie’s successful listing in 2024, which became the largest on the Algiers Stock Exchange, signaling a growing interest in public listings as a vehicle for economic reform. The BDL move reflects Algeria’s ambition to integrate domestic investors into its financial growth while potentially paving the way for future privatization of state-owned banks. This development underscores Algeria’s commitment to fostering a modern, competitive financial sector.

Finance

Algeria

Banque de Développement Local (BDL)

IPO

Algiers Stock Exchange