Published on: Tuesday, December 31, 2024, 8:08 PM
Category: Economy
The partial privatization of Algeria’s Bank of Local Development (BDL) will commence on January 20, 2025, with 44.2 million new shares being offered for sale at a price of 1,400 Algerian Dinars (DZD) per share, according to Yusuf Bouznada, Chairman of the Commission for Organizing and Monitoring Stock Exchange Operations (COSOB).
Key Details of the Share Sale
During a joint press conference with BDL’s General Manager, Yusuf Lallmas, Bouznada outlined the timeline and objectives of the operation:
- Period of Sale: January 20 to February 20, 2025.
- Offer: Public sale of 44.2 million new shares, representing 30% of the bank’s social capital.
- Target Value: The issuance aims to raise a total of DZD 61.88 billion, including an issuance premium of DZD 17.68 billion.
Following the operation, BDL’s capital will increase from DZD 103.2 billion to DZD 147.4 billion.
Steps Towards the Stock Exchange
The decision for this partial privatization was approved on December 4, 2024, by the State Participation Council. This marks a step toward BDL’s listing on the Algiers Stock Exchange. COSOB has already approved the public offer prospectus in preparation for the share sale.
Distribution and Accessibility
The public share sale will be facilitated by Algeria’s six public banks (Algerian National Bank, Algerian Foreign Bank, National Fund for Savings and Provident Bank, BDL, Algerian Popular Credit Bank, and Bank of Agriculture and Rural Development), as well as Société Générale Algeria, Tell Market, and Invest.
Shares will be divided into three categories:
- Individuals: 40% of shares.
- Corporate Entities: 30% of shares.
- Professional Investors: 30% of shares.
The minimum subscription is set at ten shares, in compliance with Article 61 of the stock exchange’s regulations.
A Strategic Move for Financial Modernization
BDL General Manager Yusuf Lallmas emphasized the broader implications of this move, stating that it aligns with the modernization of Algeria’s financial and monetary sectors. “This provides a unique opportunity for national investors to contribute to this evolution,” he added.
To raise awareness, a comprehensive information campaign will be launched, detailing the benefits of owning BDL shares. A follow-up press conference is scheduled for January 7 in Algiers to provide additional insights into the listing process.
For further updates, visit DZWATCH.DZ.
Author: Nor-Eleslam
