[Cameroon] Microfinance institution "La Régionale" launches IPO procedures to get listed on the BVMAC
(Business in Cameroon) - In a press release issued on February 3rd, 2021, Charles Rollin Ombang Ekath, Chief Executive Officer of "La Régionale", (a Cameroonian microfinance institution) announced that his institutions started procedures to get listed on the Central African Stock Exchange (Bvmac) based in Douala.
"The aim of this operation is to raise the capital from XAF8.04 billion fully paid up and validated by the Cobac [regulator of the Central African banking sector] to over XAF15 billion for the transformation of La Régionale into a universal bank," Ombang Ekath explains.
The CEO also indicated that brokerage firm Financia Capital was mandated as the financial advisor and arranger that will assist La Régionale in the IPO process.
The forthcoming transformation of La Régionale into a universal bank (institutions that carry out all banking and financial operations) portends direct competition with CCA-Bank. Indeed, CCA-Bank was also a financial institution before becoming a universal bank in May 2018. The two will therefore be competing in the same market segment, different from commercial banks (individuals, companies, and public authorities), investment banks (corporate finance), or investment banks (IPOs and bond issuance operations).
La Régionale is a 2nd class microfinance institution established in 1983. In early 1998, the company’s accumulated loss was estimated at over XAF1 billion. Due to those poor performances, its general management was suspended but at the end of 1998, the microfinance’s shareholders injected fresh capital helping it gain lost grounds.
As of December 31st, 2020, its net equity was about XAF10 billion, its net profit XAF1.5 billion and its customer base was 110,000 clients through a network of 41 branches in Cameroon. In Gabon, the microfinance institution has four branches.