BOA Benin Doubles Shares After Capital Increase Amid Challenges

AFRICAN STOCKS AND FINANCENovember 20, 2024 at 12:12 PM UTC

TLDR

BRVM lists 20,280,524 new shares for Bank of Africa Benin (BOAB), doubling total shares to 40,561,048, boosting market capitalization to 178 billion CFA.
BOA Benin's capital increases from 20.28 billion CFA to 40.56 billion CFA through reserves and premiums incorporation, enhancing equity and liquidity.
Despite facing challenges in 2024 with a 30.9% valuation loss, BOA Benin remains the 11th most valuable stock on the BRVM, representing 1.8% of the exchange's equity market.

The regional stock exchange BRVM has listed 20,280,524 new shares for Bank of Africa Benin (BOAB), doubling its total shares to 40,561,048. This follows a capital increase through reserves and premiums incorporation.

BOA Benin's capital has grown from 20.28 billion CFA to 40.56 billion CFA, with a market capitalization now at 178 billion CFA. It is the 11th most valuable stock on the BRVM, representing 1.8% of the exchange's equity market.

However, BOA Benin has struggled in 2024, starting the year at 6,360 CFA per share but losing 30.9% of its valuation, placing it 38th in year-to-date performance. This share addition strengthens BOA Benin’s equity and liquidity, enabling the bank to pursue its growth objectives within WAEMU.

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Key Takeaways

BOA Benin's capital expansion highlights its strategy to enhance resilience despite recent market underperformance. Its current valuation positions it as a significant player on the BRVM, reflecting investor interest despite challenges. The BRVM continues to provide a platform for financial integration in francophone Africa, with listings like BOA Benin fostering liquidity and regional growth. As economic dynamics evolve, maintaining investor confidence will be key for BOA Benin's long-term success.

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