- Title: IVORY COAST: BOA Ivory Coast float postponed due to huge demand
- Date: 8th April 2010
- Summary: ABIDJAN, IVORY COAST (APRIL 7, 2010) (REUTERS) VARIOUS OF ABIDJAN REGIONAL BOURSE (BRVM) BUILDING VARIOUS OF INSIDE BRVM / PEOPLE SEATED WATCHING SCREENS LISTING SCREENS (SOUNDBITE) (French) JEAN-PAUL GILLET, WEST AFRICAN REGIONAL BOURSE (BRVM) MANAGING DIRECTOR SAYING: "For us it is a great success. It is a great pride to have the BOA banks group today. Maybe this will attract more investors, more interest for the market, more transactions, more visibility for the BVRM." STREET SCENES VARIOUS EXTERIORS OF BANK OF AFRICA BUILDING CLOSEUP OF BANK OF AFRICA SIGN PEOPLE ENTERING / EXITING BANK OF AFRICA BUILDING VARIOUS EXTERIORS OF BRVM (SOUNDBITE) (French) PAUL DERREUMAUX, BANK OF AFRICA PRESIDENT, SAYING: "What will change for the shareholders is that they will have at any moment the exact value of their investment, a great progress in the information, in transparency and its incentive listing to a positive share price, therefore, a reinforcement of their investment value." MORE STREET SCENES
- Embargoed: 23rd April 2010 16:37
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- Topics: Finance
- Reuters ID: LVA8D5ZG6FXIMZPA6C1GHZEHB5P
- Aspect Ratio: 4:3
- Story Text: The flotation of Bank of Africa shares in the West African regional bourse was suspended for one day as huge demand pushed the price beyond the daily trading range.
The Abidjan-based, West African regional bourse BRVM delayed Wednesday's (April 7) planned flotation of Bank of Africa (BOA) Ivory Coast by one day after demand pushed the share price beyond the daily limit, bourse officials said.
The bank planned to float 600,000 shares at a reference price of 23,000 CFA francs (46.89 U.S. Dollars) but heavy demand immediately pushed the market price to 28,000 CFA (57.08 U.S. Dollars), well outside the maximum price movement of 7.5 percent allowable per day.
The flotation was due to take place on Thursday (April 8) at an initial price set somewhere between 24-25,000 CFA and with a one-off increase in the permissible daily trading range. That increase was not immediately specified.
"For us it is a great success. It is a great pride to have the BOA banks group today. Maybe this will attract more investors, more interest for the market, more transactions, more visibility for the BVRM," BRVM managing director Jean-Paul Gillet said.
BOA president in Abidjan Paul Derreumaux said the listing would give investors better value because of the readily available information.
"What will change for the shareholders is that they will have at any moment the exact value of their investment, a great progress in the information, in transparency and its incentive listing to a positive share price, therefore, a reinforcement of their investment value," he said.
Many of West Africa's biggest companies trade on the 12-year-old BRVM, including index major Sonatel Senegal's national telecoms company.
International investors say the limited liquidity of the bourse, where sometimes fewer than 100 shares change hands each day, has been a factor holding back interest in its stocks. - Copyright Holder: REUTERS
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