Algeria's main stock market jumped seven-fold on Tuesday, bringing its market value to close to $4 billion, following the initial public offering (IPO) of the state-controlled "Crédit Populaire d'Algérie" bank.
The largest listing in the three-decade history of the Algerian Stock Exchange raised 112 billion dinars ($833 million) for the bank known as CPA, which became the fifth company to float its shares locally in the North African country. This brings the total market value of the stock exchange to 532 billion dinars, from 72 billion dinars, according to data on its website.
Despite weak demand, Finance Minister Aziz Fayed described the sale as a "milestone" in the government's efforts to reform the country's financial system.
He said during a ceremony in Algiers on the occasion of the first trading of the state-controlled bank, that the government also plans to sell shares in the state-controlled “Local Development Bank” in 2024.
Individual investors bought nearly 70% of the 49 million shares sold at 2,300 dinars per share, according to the National Market Supervision Authority (KOSOP) in comments reported by state media.
Earlier, the bank was forced to reduce the maximum offering size, which was initially set at 60 million shares, or 30% of CPA's capital.
Follow the latest news on Google News
