Benin to Sell Up to 40% Stake in BIIC via Public Offering
TLDR
- Benin will sell up to 40% of its BIIC stake in a public offering starting January 13, 2025, aiming to raise up to 121 billion FCFA to fund development projects.
- The Beninese government’s stake sale in BIIC will promote market transparency, reduce debt reliance, and help shape the country's evolving financial landscape.
- With strong growth and a potential merger on the horizon, BIIC offers a promising investment opportunity, as Benin reduces its stake to encourage private sector involvement.
The Beninese government will sell between 30% and 40% of its shares in Banque Internationale pour l’Industrie et le Commerce (BIIC) through a public offering set to begin on January 13, 2025. The offering, priced at 5,250 FCFA per share, is expected to raise 92 to 121 billion FCFA ($145 to $191.7 million) to finance development projects.
BIIC, formed in 2020 from the merger of Banque Internationale du Bénin (BIBE) and Banque Africaine pour l’Industrie et le Commerce (BAIC), has grown rapidly. By mid-2024, it accounted for 22% of Benin’s banking assets, surpassing competitors like BOA. The bank’s total assets surged by 125% in three years to reach 1,411 billion FCFA, with strong market positions in loans and deposits.
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Key Takeaways
BIIC Public Offering to Reshape Benin’s Banking Landscape
The government’s stake sale is part of a broader strategy to promote transparency, stimulate the regional stock market, and reduce reliance on debt. Following the offering, the state’s shareholding in BIIC could drop from 51% to 11.26%, with the public potentially holding 40%, and existing institutional shareholders retaining their stakes.
With annual net profit growth averaging 117%, BIIC presents a strong investment opportunity. Its future growth prospects are bolstered by a possible merger with Société Générale’s Benin operations, which could add 300 billion FCFA in assets and strengthen its leadership in public debt management.
The offering’s success will set the tone for Benin’s evolving financial ecosystem, further integrating private investors into its economic growth model.
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