(Business in Cameroon) - The Cameroon Local Materials Promotion Authority (Mipromalo) announced it is seeking funds on the regional money market to build two brick and tile production units. As part of this project, the MD of this public institution, Libiky Boubakar, met on May 16 with the CEO of the Central African Stock Exchange (Bvmac) and representatives of the stock exchange companies to discuss the terms of raising funds and listing securities.
The amount to be raised was not disclosed, but Mipromalo revealed that one of the two units will be for the manufacture of bricks and fired tiles with a capacity of 300 tons/day in Douala and the second will be for the manufacture of marble tiles in the northern region. The project aims to popularize the use of local materials in all regions of Cameroon. Indeed, despite the public institution's efforts, there is still a preference for using traditional building blocks instead of stabilized earth blocks, which are known to possess unique thermal properties.
To raise money on the Bvmac, Mipromalo can issue a bond or make an initial public offering (IPO). In either case, it will have to meet several conditions, in particular, the presentation to potential investors of its financial situation to enable them to assess the investment opportunity. In the case of an IPO, which implies the entry of new shareholders in its capital, the company must have a minimum market capitalization of CFA10 billion, a minimum equity of CFA500 million, two consecutive profitable years, certified annual accounts...
"During the meeting, we assess the major issues related to the financing requested when it comes to the issuer, financial intermediaries, and the role that each side must play for its proper implementation. Thus, a set of steps and actions will be initiated by Mipromalo in the current year taking into account the advice received from the financial market connoisseurs," the Bvmac said.