BGFI Holding's CFA80.56bn Share Offer Closes Oversubscribed

BGFI Holding Corporation, the parent company of Gabon's BGFIBank, announced on October 15 that the second phase of its capital raising has closed oversubscribed, a success that contrasts sharply with the shortfall of its first share sale and marks a turning point in one of Central Africa's largest ever public offerings.

The second phase, which ran from September 15 to October 15, sought to mobilise CFA80.558 billion, about $137.8 million, through the issue of 1,006,975 new shares priced at CFA80,000 each. Investor demand exceeded the amount on offer, although the group has not disclosed the total subscriptions received or the final oversubscription rate.

A first round that fell short

The offering had a difficult beginning. The first phase, launched in November 2025, raised CFA45.325 billion against an initial target of CFA125.883 billion, a coverage rate of just 36 per cent, from 7,601 investors across 24 countries. Gabonese subscribers accounted for more than CFA22 billion of that total, with Cameroon's investors contributing CFA12.7 billion, or about 28 per cent.

To correct course, the board approved a second phase in June 2026 with the price held at CFA80,000 a share to ensure equal treatment with first-round participants, and with the individual holding limit of 0.5 per cent of capital removed to admit institutional investors able to write larger cheques. BGFIBourse was also joined by EDC Investment Corporation as co-arranger.

What the money is for

The issuance will lift BGFI Holding's shares outstanding from 14,728,385 to 15,735,360 and increase the public float from 3.85 per cent to 10 per cent of capital, with historical shareholders retaining the entirety of their holdings in number of shares and being diluted only proportionately.

Proceeds are earmarked for the BGFI 2030 business plan, which aims to consolidate the group's position in its priority markets, pursue growth and create three new subsidiaries by 2030. The company's shares have traded on the Bourse des Valeurs Mobilières de l'Afrique Centrale (BVMAC) in Libreville since May 7, 2026, having changed hands between CFA82,000 and CFA90,000 during the reference period used to set the issue price.

Allocation decisions ahead

With demand exceeding supply, the company must now choose between reducing the quantities allotted to subscribers or seeking the approval of COSUMAF, the regional markets regulator, to increase the issue on the same terms. Neither the geographic breakdown of the new subscriptions nor the allocation method has been published, details investors in Cameroon and elsewhere will be watching closely given last round's figures.

Why the result matters

Central Africa's equity market has a shallow bench of listed financial institutions, and a fully subscribed second phase after a failed first attempt would signal that institutional depth is growing, particularly if domestic pension funds and regional asset managers drove the demand. For BGFIBank, it converts a reputational setback into a cleaner balance sheet and a broader shareholder base heading into the rest of its strategic plan.