Benin’s Lottery Firm Gains 4% on BRVM After $69M IPO
TLDR
- Loterie Nationale du Bénin SA (LNB) rose 4.1% in its debut on the Bourse Régionale des Valeurs Mobilières
- The Beninese state-run lottery company listed after a $69 million initial public offering (IPO)
- LNB’s IPO aligns with Benin’s strategy to diversify its economy beyond cotton production
Loterie Nationale du Bénin SA (LNB), Benin’s state-run lottery company, rose 4.1% in its debut on the Bourse Régionale des Valeurs Mobilières (BRVM) in Abidjan, Ivory Coast, following its $69 million initial public offering (IPO).
Shares of the company (LNBB) opened at 4,800 CFA francs and climbed to 5,000 CFA francs ($8), according to EDC Investment, which managed the IPO. The Beninese government sold 9 million shares, equivalent to 45% of LNB’s equity, to fund sports, cultural, and social projects.
LNB’s IPO aligns with Benin’s strategy to diversify its economy beyond cotton production, supported by initiatives like expanding the Port of Cotonou and establishing industrial zones. The International Monetary Fund projects Benin’s GDP to grow by 6.5% in 2024, making it one of Africa’s fastest-growing economies.
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Key Takeaways
Benin’s first IPO attracted diverse investors, with 42% of shares bought locally and 33% acquired by participants in the West African Economic and Monetary Union. The remaining interest came from international investors. This significant debut highlights BRVM’s growing role in regional capital markets and Benin’s efforts to attract global capital. By leveraging proceeds for development projects, LNB’s success could pave the way for future listings as the government continues to diversify its economic base. The IPO also underscores investor confidence in West Africa’s emerging markets, fueled by stable growth and infrastructure expansion.
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