Angola State Mining Co. Endiama Gearing Up for 2020 IPO

Rough Market
06/02/2020 15:44

Angola state-owned diamond mining company Endiama plans to float as much as 30% of its shares in an initial public offering (IPO) in 2020, according to Chairman José Manuel Gango Junior from an interview on the sidelines of the Africa Mining Indaba. He said the sale is part of a government plan to increase transparency in the diamond sector and bolster production. “We are preparing Endiama for a public listing and we are currently assessing the company’s value,” Gango Junior told Bloomberg. “The state will continue to have control even after the listing.” It is unclear where the company would be listed.

On December 7, 2018, the Executive Board of the International Monetary Fund (IMF) approved a three-year EAEFF (Extended Arrangement under the Extended Fund Facility) for Angola for an amount of about US$3.7 billion to support Angola’s economic reform program. The IMF noted that improving governance, reducing risks associated with state-owned enterprises, addressing structural obstacles to competitiveness and improving access to finance, amongst others, will be key to accelerate private-sector-led economic growth. President Joao Lourenco, who assumed his new role in 2017, has made it a priority to reform the country, eliminate corruption and attract investors. The diamond industry is one of his key targeted sectors.

Ganga Junior told Bloomberg that “A public listing and the reforms underway lay the foundation for Endiama to become the world’s largest supplier of gems.” Angola is currently the world’s seventh biggest diamond producer. Endiama expects to increase production to 10.3 million carats this year, from 9.12 million carats in 2019, the company said in a presentation at the Mining Indaba conference in Cape Town. It said it expected revenues from diamond sales to rise to $1.65 billion in 2020, from $1.26 billion last year.