Airtel Malawi Initial Public Offer (IPO), which closed on January 31, recorded an oversubscription of 34 percent, the firm said on Saturday ahead of its listing on the Malawi Stock Exchange (MSE) on February 24.
The oversubscription was achieved despite unfavourable publicity in the social media regarding the company’s financial health.
While a total of 2,200,000,000 shares were on offer, the total number of shares applied for amounted to 2,207,272,446, resulting in the oversubscription.
Briefing members of the Association of Business Journalists (ABJ) in Lilongwe, Airtel Malawi Managing Director, Charles Kamoto, described the oversubscription as a vote of confidence Malawians have in the future of the firm.
“This oversubscription is testament to the fact that Malawians believe in the future prospects of Airtel Malawi and want to participate in and benefit from the growth of the business.
“On my part, I am pleased with the interest that we have received from far and wide, which will not only enable us to be compliant with the Communications Act of 2016 with respect to ownership but also ensure that, with the requisite minimum numbers achieved, we will be able to list at the 15th counter on the Malawi Stock Exchange,” Kamoto said.
He said through the IPO, Airtel Malawi has demonstrated its commitment to contribute to the growth and development of Malawi, adding that adding a counter on the exchange will provide additional opportunities for investments and enhance the liquidity of the MSE.
Through the IPO, Airtel Malawi has raised K28 billion. Kamoto said the firm will from today start refunding unsuccessful applicants money totalling K92.29 million.
He said the unsuccessful applications comprise incomplete applicants and foreign applicants.
“These will be refunded directly into the bank accounts written on the application. Should these details be incorrect a cheque will be mailed to the address used on the application form.
“On behalf of the Board and Management team of Airtel Malawi plc, I would like to take this opportunity to thank each and every one of our stakeholders for supporting us through this period and ensuring that this process concludes. I would also like to wish our new shareholders a warm welcome and look forward to serving them into the future,” he said.
Kamoto hailed the role business journalists played during the IPO in giving the right information about the firm’s financial position.
During the briefing, ABJ National Coordinator, Vincent Khonyongwa, congratulated Airtel Malawi for a successful IPO.
Khonyongwa said ABJ is committed to helping local businesses grow by providing a link between the businesses and their customers.
The Malawi Communications Regulatory Authority’s had previously recommended that shares be allocated to Malawians first, followed by companies owned by Malawians and then pension funds.