Sonangol, Angola’s state-owned oil giant, is progressing with preparations for an initial public offering (IPO), targeting a potential listing in 2027 as part of the country’s broader privatization agenda. Executives confirmed that technical work on the IPO continues, with internal teams focused on meeting regulatory and market requirements for a future listing.
At a press conference in Luanda, board member Baltazar Miguel stated, “There is a lot of work underway for the IPO,” signaling the company’s commitment to entering the capital markets while maintaining operational focus on its core oil activities.
The IPO forms a key component of Angola’s Privatization of State-Owned Enterprises Program (PROPRIV), launched in 2019 to reduce the government’s role in the economy, attract private investment, create jobs, and increase tax revenues. PROPRIV employs mechanisms such as share offerings, public tenders, and stock exchange auctions to privatize state assets. Originally set to run through 2023, the program was extended to 2026, with the government recently narrowing its focus from 49 to 10 target companies in strategic sectors including telecommunications, banking, mining, aviation, media, and energy.
Sonangol’s IPO timeline has been adjusted within this revised framework, with no firm schedule announced for the listing. The state’s broader privatization program has already seen the sale of 103 public assets between 2019 and 2024, totaling approximately 1 trillion Angolan kwanzas ($1.04 billion), with 640 billion kwanzas ($664 million) collected so far.
Alongside IPO preparations, Sonangol is undertaking financial restructuring and operational realignment. According to its 2024 consolidated financial report, the company’s financial debt rose to $4.12 billion by December 31, 2024, up from roughly $3.87 billion the previous year. Total consolidated liabilities reached nearly US$16.6 billion, reflecting continued borrowing to support operational and capital expenditures. Management emphasized ongoing efforts to optimize the balance sheet and strengthen the company’s financial position ahead of the IPO.
Industry observers note that Sonangol’s listing could become one of the largest IPOs in sub-Saharan Africa in recent years, potentially attracting international investors interested in Angola’s oil sector while also contributing to the development of the country’s capital markets. The IPO would complement the government’s efforts under PROPRIV to strategically reduce state holdings in key industries while leveraging private capital for growth and modernization.
The Angolan government has indicated that privatization under PROPRIV will focus on high-impact sectors that drive economic diversification. Adjustments to the program, including the reduction of the asset list, are intended to streamline efforts on companies with the most strategic potential, with Sonangol positioned as a centerpiece of energy sector privatization.
If successful, the Sonangol IPO would provide the government with fresh capital, increase transparency in corporate governance, and enhance operational efficiency within the oil sector. Analysts expect that the IPO, combined with ongoing financial and structural reforms, could also help attract foreign investment, support infrastructure development, and create new jobs, further aligning with Angola’s broader economic diversification goals.
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In summary, Sonangol continues to advance its IPO preparations as part of Angola’s strategic privatization program. The state oil company is balancing financial restructuring, operational realignment, and regulatory compliance to position itself for a successful 2027 listing, reflecting both the government’s privatization ambitions and the growing importance of private sector participation in Angola’s energy economy.
